This Company Owned By The Prajogo Pangestu Conglomerate Is Making Profit Of IDR 774 Billion In 2020, Soaring 124 Percent!

Prajogo Pangestu Conglomerate. (Photo: Instagram @forbesindonesia)

JAKARTA - The petrochemical company owned by the Prajogo Pangestu conglomerate, PT Chandra Asri Petrochemical Tbk managed to record positive performance throughout 2020. The petrochemical producer recorded a net profit for the year attributable to the parent entity reaching 51.35 million US dollars, or Rp774 billion (exchange rate of Rp14. 245 per US dollar).

Director Chandra Asri Petrochemical Suryandi said the recovery in demand for chemicals increased in the fourth quarter of 2020 in line with the economy slowly improving from the lockdown. Meanwhile, the strong rebound in consumption came mainly from China and Northeast Asia.

"The positive trend that occurred in the fourth quarter of 2020 can continue until 2021. We are prudent, but we are optimistic about sustainable resilience and growth in demand," said Suryandi, quoted from the information disclosure page of the Indonesia Stock Exchange (IDX), Wednesday, March 3.

Chandra Asri's profit achievement soared 124.4 percent when compared to net profit in 2019 which was only 22.88 million US dollars. Basic earnings per share (in full value) of the issuer coded as TPIA shares rose to US $ 0.0029 from the previous US $ 0.0013.

However, the net income of the company owned by the 3rd richest person in Indonesia was recorded to have decreased. Chandra Asri posted net income of US $ 1.80 billion, or a decrease of 3.9 percent compared to 2019's revenue of US $ 1.88 billion.

TPIA's sales throughout 2020 consist of local sales worth US $ 1.3 billion, foreign sales worth US $ 496.31 million, and tank and dock rental worth US $ 9.40 million.

Some of Chandra Asri's burdens were observed to have decreased. Cost of revenue decreased by 3.9 percent from the previous US $ 1.71 billion to US $ 1.64 billion.

General and administrative expenses were also observed to decline 21.61 percent to 33.73 million US dollars. However, TPIA posted an increase in financial costs, from US $ 56.38 million to US $ 64.97 million.

As of December 31, 2020, Chandra Asri's total assets were valued at US $ 3.59 billion, consisting of liabilities worth US $ 1.78 billion and equity worth US $ 1.81 billion.