AKRA 1H16 Net profit of Rp 586 billion, better performance in Q2’16

JAKARTA, 27^th July 2016 – PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ) reported its unaudited consolidated financial statements for the 6 months of 2016 with net profit after tax of Rp 586 billion, slightly lower than Rp 605 billion reported during the same period last year. The company reported strong sequential growth in profits with net profit of Rp 330 billion in Q2’16, which is higher by 29% compared to Rp 255 billion reported in Q1’16.

Consolidated gross revenues during 6 months is Rp 7,368 billion in 1H’16 compared to Rp 10,273 billion in 1H’15. The Company’s Sales and Revenues grew 6% to Rp 3,796 billion in Q2’16 compared to Rp 3,572 billion in Q1’16. Consolidated revenues were impacted during 1H’16 due to the lower petroleum selling prices.

The Company reported higher margins during the 6 months with 1H’16 gross margin of 13.7%, operating margin of 10.4% and net margin of 8.0%.

Table 1. Highlights of Unaudited Consolidated Statement of Income

(Rp billion)

The Earnings Per Share (“EPS”) for the first 6 months of 2016 is Rp 146.9 per share (annualized at Rp 293.7 per share) compared to EPS of Rp 261.9 per share during FY2015.

Consolidated revenue of the company during 1H16  of Rp 7,368 billion comprises of Trading & distribution segment revenue of Rp 6,536 billion , Manufacturing segment revenue of Rp 301 billion , Logistic segment revenue of Rp 360 billion and Industrial estate segment revenue of Rp 170 billion.

Trading & distribution segment revenues were lower due to low oil prices; however oil price have started to recover in Q2’16 positively impacting sales revenues. Also sales of basic chemicals was slightly lower in 1H’16 due to weak consumer industrial demand for basic raw materials compared to the same period last year.

The Company’s subsidiary PT BKMS which is developing the industrial estate in JIIPE has recognized land sales revenue of Rp 170 billion during 1H’16 compared to Rp 128 billion during 1H’15.

The company has reported an overall improvement in quarterly profits with gross profits growing 28% to Rp 567 billion in Q2’16 vs. Rp 443 billlion in Q1’16 and operating profits growing 35% to Rp 441 billion in Q2’16 from Rp 328 billion in Q1’16.

Commenting on the financial results, President Director Mr Haryanto Adikoesoemo said “We are happy to report a strong performance during Q2’2016 with sequential profit growth of 30%. The rebound in oil prices has helped to improve margins, while the demand for petroleum products in industrial sectors continue to be weak due to low commodity prices. With the removal of subsidies for gasoline, AKR introduced AKRA RON92 gasoline product through select petrol stations in Java in 2016”.

“In terms of the progress with our JIIPE integrated industrial & port estate, we are on track to deliver the industrial estate land to our customers and we have also commenced project for delivering captive electricity to our tenants which we are aiming to complete the stage 1 (23MW) by June 2017. The seaport in JIIPE started operations from January 2016 and is already handling mid to large size vessels in Manyar port. Our focus will remain clear in reducing logistics cost while delivering value proposition to our customers” said Haryanto.

Financial Position

Total assets of the Company as at 30^th June 2016 is Rp 15,383 billion while the total liabilities is Rp 7,439 billion. Net equity attributable to the equity holders of the parent company is Rp 7,944 billion.

Net gearing of the company remains low at 0.40x as at 30^th June 2016 while its Return on Asset improved to 7.6% during 1H’16 compared to 6.8% in 2015.

Table 2. Balance Sheet as at 30^th June 2016 and 31^st December 2015

(Rp billion)

Financial Ratios

Table 3. Financial Ratios

The full financial statements are available to download from the Company’s website at http://www.akr.co.id/

Haryanto Adikoesoemo

PT AKR Corporindo Tbk