Profits Owned By The Conglomerate TP Rachmat And Boy Thohir Increase By 8.86 Percent In The First Quarter Of 2021

Illustration. (Photo: Doc. Surya Esa Perkasa)

JAKARTA - PT Surya Esa Perkasa Tbk (ESSA) recorded a revenue growth of 8.86 percent in the first quarter of 2021. This achievement is in line with the significant contribution from the ammonia business segment.

Quoted from the financial report of Surya Esa Perkasa, Friday, April 23. the company managed to book revenue of 68.5 million US dollars in the first quarter of 2021. This number is up 8.86 percent compared to the first quarter of 2020 amounting to 62.9 million US dollars.

Ammonia revenue, a company whose shares are owned by conglomerate TP Rachmat and Garibaldi (Boy) Thohir, recorded an increase of 11.8 percent in the first quarter of 2021 compared to the same period the previous year. This also contributed to the increase in ESSA's revenue, which most of the sales contribution came from the Ammonia segment by 86 percent.

The next sector that contributed the most to ESSA was LPG at 14 percent. From the operational side, ESSA succeeded in reducing selling expenses by 18 percent and general and administrative expenses by 17 percent.

This has allowed ESSA to generate better operating margins, thus driving an increase in net profit to US $ 9.5 million compared to US $ 0.3 million in Q1 2020.

ESSA President Director Vinod Laroya stated that the increase in ESSA's income and net profit occurred in line with the sharp recovery of Ammonia prices since January 2021. The increase in Ammonia prices was driven by supply constraints and the start of the initial phase of demand recovery.

"In the future, ESSA will continue to improve its performance in line with the recovery of prices and demand in the global market," he said in an official statement from Surya Esa Perkasa received by VOI.

Ammonia is widely used as a raw material for making fertilizers, plastics and chemicals around the world. However, current Ammonia demand forecasts do not consider Ammonia's role as a future fuel alternative due to its high hydrogen content, low emissions, and reliable logistics delivery.

Vinod said that along with the increase in global ammonia demand, ESSA sees that the opportunity to develop ammonia demand through Blue Ammonia has good prospects.

For this reason, in March 2021, the company collaborated with Japan Oil, Gas and Metals National Corporation (JOGMEC), Mitsubishi Corporation (MC), and the Bandung Institute of Technology (ITB) in the fields of Carbon Capture, Utilization & Storage / CCUS) for the production of Blue Ammonia in Indonesia at the Ammonia Factory in Banggai, Central Sulawesi.

Furthermore, in March 2021 through its subsidiary, PT Panca Amara Utama (PAU), ESSA has successfully refinanced a long-term loan of US $ 495 million. This allows PAU to have a simpler and more streamlined capital structure.

For information, PT Surya Esa Perkasa Tbk (ESSA) is engaged in manufacturing, trading, export, import, distribution of LPG (Liquefied Petroleum Gas), Condensate and Propane, and other related businesses. The company started commercial operations in September 2007.