Chandra Asri Owned By Entrepreneur Prajogo Pangestu Successfully Earns IDR 2.38 Trillion Net Profit In Semester I 2021

Prajogo Pangestu conglomerate. (Photo: Doc. Antara)

JAKARTA - PT Chandra Asri Petrochemical Tbk. released the company's financial performance throughout the first semester of 2021 by recording a net profit of 165 million US dollars or equivalent to Rp. 2.38 trillion.

Director Chandra Asri Suryandi said the results were supported by operating revenues which increased 50 percent year-on-year (yoy) to 1.26 billion US dollars in the first half of this year.

“We are pleased to announce this continued solid result. After a strong start in the first quarter, the company was able to take advantage of healthy product spreads, sustainable operational excellence, and strong financial resilience," he said in a press statement, Friday, July 30.

According to Suryandi, in the first six months of 2021, Chandra Asri maintained a Liquidity Pool of US$1.2 billion, including US$762 million in cash and cash equivalents at the end of this quarter.

In addition, the business entity coded as TPIA is said to have reduced leverage with net debt to EBITDA of 0.3x and reduced total debt to US$899 million from US$945 million in the second quarter of 2020.

"In addition, we obtained a credit facility worth IDR 5 trillion (US$350 million) with Bank Mandiri, which further strengthens the business capital structure," he said.

Furthermore, total assets fell 2.2 percent to US$3.51 billion as of June 30, 2021, from previously US$3.59 billion as of December 31, 2020.

"This was mainly due to lower cash and cash equivalents reflecting higher net cash used in operations coupled with lower prepaid taxes, offset by higher trade receivables and inventories," he said.

On this occasion, Suryandi also conveyed information on the signing of a cooperation with Thai Oil Public Company Limited (Thaioil) related to the company's limited public offering of the company's rights issue. Later, after this corporate action, Thaioil is expected to hold 15 percent of TPIA's shares.

Meanwhile, the total investment fund targeted by the company owned by senior businessman Prajogo Pangestu is said to have reached US$1.7 billion. The fund itself is planned to be used for the development and construction of the company's second integrated petrochemical complex (CAP 2).

To note, this transaction is still subject to the required regulatory approvals, including from the OJK and is expected to be completed no later than 30 September 2021.

"This achievement places us firmly in the direction of continuing the development of CAP 2 to meet the growing needs of the Indonesian market," concluded Director Chandra Asri Suryandi.