AKRA Posted Net Profit of Rp 391 bn in 1H19, with Margin Improvement

JAKARTA, 26 July 2019 – PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ), distributor of Petroleum, Basic chemicals and provider of Logistic & supply chain services in Indonesia reported revenue of Rp 9,714 bn and net profit attributable to equity holders of parent entity of Rp 391 bn during the 6 months ended 30th June 2019. During the corresponding period in 2018, the Company posted Net Profit of Rp1,121bn, including extraordinary gain of Rp736 bn from the divestment of subsidiaries.  AKRA reported margin improvement during 1H 2019 compared to the same period last year. The unaudited financial results for the semester ended 30th June 2019 was filed with the Indonesian Stock Exchange today. 

HIGHLIGHTS

• Revenue was lower by 13% y/y to Rp9,714 bn due to lower revenue in trading and distribution business.
• Average Selling Price of Petroleum products increased in line with MOPS, while basic chemical prices softened.
• Gross Margin during 1H 2019 expanded to 8.6% from 7.3% in 1H 2018, and operating margin improved to 5.1% in 1H 2019 from 4.3% in 1H 2018.  AKRA reported gross profit during 1H 2019 Rp 837 bn and operating profit Rp 493 bn. 
• G&A and selling expenses remained under control at Rp 353 bn, relatively stable compared to Rp 345 bn in the same period last year.
• Core net profit came in at Rp391 bn in 1H 2019, slightly higher compared to Rp 385 bn in 1H2018.
• Balance sheet remained strong as of 30 June 2019, with net gearing stood at 0.38x.

President Director of AKRA, Mr. Haryanto Adikoesoemo, stated;

" Our performance in 1H19 showed resiliency in our business, with margin improvement driven by trading and distribution segment.  The operating environment for petroleum and basic chemicals products continues to show improvement with growth in mining, industrial and commercial segments.” 

“Subsequent to the election, interests on industrial estate has been picking up.  With all the infrastructures and utilities in stage 1 developed, JIIPE will attract new investors to our industrial estate”, Said Mr. Haryanto. 

“BP-AKR has expanded the operation of BP brand petrol stations to Surabaya during 1H 2019 having opened its first station in Greater Jakarta last year.  Expansion of Jakarta Tank Terminal (JTT) is also on schedule and will be completed during the 2nd semester of 2019, adding additional capacity of 100,000KL to support the growing gasoline market”, Mr. Haryanto added.