Slightly Rising, Semen Indonesia's Net Profit Reaches IDR 866 Billion in Semester I-2023

Illustration of Semen Indonesia (Photo: Doc. Antara)

JAKARTA - PT Semen Indonesia Tbk (SMGR) or SIG recorded profit for the period attributable to owners of the parent entity of IDR 866 billion in semester I-2023. Achievements increased 3.1 percent year on year (yoy) compared to the same period the previous year at IDR 840 billion.

SIG Corporate Secretary Vita Mahreyni said the company's net profit was supported by revenue which reached IDR 17.03 trillion in the first half of 2023, or an increase of 2 percent (yoy), compared to the previous IDR 16.70 trillion in the same period last year.

Even though the domestic market contracted by 5 percent, Vita said the company was able to maintain total sales volume growing 0.1 percent (yoy), which was supported by growth in export sales.

Along with that, the company recorded a cost of revenue of IDR 12.61 trillion, with EBITDA recorded at IDR 3.5 trillion.

Then, the company recorded operating expenses which fell 9.5 percent (yoy) to IDR 2.54 trillion in the first semester of 2023, from IDR 2.81 trillion previously in the same period last year.

Then, net financial expenses decreased by 15.3 percent (yoy) to IDR 590 billion, compared to the previous period of IDR 697 billion.

"The increase in net profit driven by the capability to manage cost increases, optimization of utilization, as well as operational efficiency and financial expenses, is proof of SIG's resilience in overcoming various challenges," said Vita.

Even though it was affected by the increase in fuel prices that occurred in the fourth quarter of 2022, Vita said that the increase in operational excellence had minimized the impact of the increase in the company's costs.

She explained that the company achieved increased operational excellence through a number of initiatives, including efficiency in the coal consumption index, reduction of specific thermal energy consumption (STEC), increased use of alternative fuels, disciplined management of operating costs, and financial cost efficiency from the deleveraging program.

In addition, she also said, the company achieved sustainability targets to ensure environmentally friendly operations and create added value for stakeholders.

Until the end of semester I-2023, heat energy substitution (TSR) has increased to 7.5 percent from the 2019 baseline, with carbon emissions dropping 16.94 percent to 588 kg CO2/ton cement equivalent from the 2010 baseline (708 kg CO2/ton cement equivalent).

Vita revealed that this achievement was obtained from optimizing STEC, using alternative fuels and EBT at SIG production facilities.