AKRA Posted Robust Revenue Growth in 1Q18 and Continuously Strengthened its Financial Position
For Immediate release
Apr 26, 2018
AKRA Posted Robust Revenue Growth in 1Q18 and
Continuously Strengthened its Financial Position
JAKARTA, 26th Apr 2018 – PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ), distributor of Petroleum, Basic
chemicals and provider of Logistic & supply chain services in Indonesia reported robust revenue growth of 34% Y/Y
from Rp 4,341 bn in 1Q17 to Rp 5,834 bn in 1Q18, with growth seen in both petroleum and basic chemical
businesses. AKRA also reported net profit attributable to equity holders of parent entity at Rp 929 bn in 1Q18
compared to Rp258 bn in 1Q17.
In addition to the success of land auction of Khalista’s in Lizhou, China in February 18, we also have completed the
sale of one of our coal assets called PT Bumi Karunia Pertiwi (BKP).
FINANCIAL HIGHLIGHTS
▪
▪
▪
▪
▪
Revenue increased by 34% to Rp 5,834 bn in 1Q18 from Rp 4,341 bn in 1Q17. On Q/Q basis, we saw 20% revenue
growth.
Operating profit came in at Rp 241 bn in 1Q18, up 11% on Q/Q basis, a 29% decrease from the same period of
last year as we recognized forex loss of Rp 7.5 bn in 1Q18 (vs. forex gain of Rp 18.2 bn in 1Q17).
We divested Khalista’s sorbitol manufacturing and Bumi Karunia Pertiwi’s coal with total gain amounting to
Rp728.7 bn in 1Q18.
All in all, our net profit came in at Rp 929 bn in 1Q18 vs Rp 258 bn in 1Q17. EPS (basic) in 1Q18 is Rp 231.88 vs
Rp 64.74 in 1Q17.
We strengthened our balance sheet with strong cash position and net gearing as of Mar 2018 stood at Rp 1,842
bn and 0.17x, respectively. Pefindo has recently raised our debt outlook to “Positive” from previously “Stable”,
while maintained our rating at “idAA-“.
President Director of AKRA, Mr. Haryanto Adikoesoemo, stated;
"During 1Q18, AKRA has been continuously strengthening its businesses to grow further in the future. AKRA revenue
grew by 34% y/y, supported by increase in average selling price of petroleum and Basic chemicals, also new
customers of petroleum. AKRA underwent a change in its asset and investment portfolio during 2017 to gain strong
capital structure. Auction of lands belonged to Khalista, AKRA’s unit of sorbitol manufacturing in China, has been
successfully held in February 2018. The divestment of Company’s coal business PT Bumi Karunia Pertiwi also has
been completed in March 2018. Proceeds of the divestment of both units will be redirected to domestic projects that
we expect to generate higher returns in the longer term.”
REVENUE ANALYSIS
Robust Revenue growth
▪ Revenue increased by 34% Y/Y to Rp 5,834 bn in 1Q18 from Rp 4,341 bn in 1Q17. On Q/Q basis, we saw 20%
revenue growth.
▪ Sales of petroleum rose by 47% Y/Y t Rp 4,247 bn, driven by both higher oil price and volume. Average price of
crude oil (Brent) increased from 55 $/bbl in 1Q17 to 66 $/bbl in 1Q18.
▪ Sales of basic chemical products increased by 29% Y/Y to Rp1,333 bn, mostly due to higher ASP.
PT AKR Corporindo Tbk
▪
▪
Apr 26, 2018
Petroleum contributed 73% to revenue in 1Q18 (66% in 1Q17), while basic chemical contributed 23% (vs 24%
in 1Q17).
We started to book revenue from infrastructure services in JIIPE in 1Q18, despite the absence of land sales from
the industrial estate.
Segment
BBM
Bahan Kimia Dasar
Total Trading & Distribution
Industrial Estate
Others
Total Revenue
1Q18
4,247
1,333
5,580
1
252
5,834
1Q17
2,880
1,037
3,916
115
310
4,341
∆Y/Y
48%
29%
42%
na
-19%
34%
Q4’17
3,064
1,320
4,384
181
294
4,859
1Q18
4,247
1,333
5,580
1
252
5,834
∆Q/Q
39%
1%
27%
na
-14%
20%
Revenue by segment - 3M18
Others
4%
Chemical
23%
Petroleum
73%
UNAUDITED STATEMENT OF INCOME FOR 1Q18
Cost measurements to keep expenses in control
▪ GA & selling expenses at Rp 176 bn were under control at only 3.0% of sales in 1Q18, compared to 3.2% in 1Q17
and 4.1% in 4Q17.
Significant Growth in Net profit and EPS
All in all, our 1Q18 net profit attributable to equity holders of parent entity came in at Rp 929 bn, up significantly
from Rp 258 bn in 1Q17. EPS (basic) is Rp 231.88 vs Rp 64.74 in 1Q17.
2
PT AKR Corporindo Tbk
Apr 26, 2018
INCOME STATEMENT (In Rp bn, except EPS)
Sales and Revenues
Cost of Sales and Revenues
Gross Profit
Operating Profit
Profit from continuing operations before
Income Tax
Tax expense, net
Profit for the period from continuing
operations
Net gain on divestment
Other comprehensive income
Profit for the period attributable to equity
holders of the parent entity
EBITDA
EPS
Gross margin
GA & selling expenses margin
Operating margin
Net margin
EBITDA margin
1Q18
Δ Y/Y
1Q17
1Q18
4Q17
Δ Q/Q
5,834
(5,418)
416
241
4,341
(3,890)
452
340
34%
39%
-8%
-29%
5,834
(5,418)
416
241
4,859
(4,409)
450
217
20%
23%
-8%
11%
230
(43)
337
(48)
-32%
-10%
230
(43)
203
(31)
13%
39%
191
728
10
289
(15)
-34%
na
-165%
191
728
10
189
6
31
1%
na
-69%
929
332
231.88
258
398
64.74
259%
-17%
258%
929
332
231.88
184
464
48.00
405%
-28%
383%
10.4%
3.2%
7.8%
6.0%
9.2%
-3.3%
-0.2%
-3.7%
10.0%
-3.5%
7.1%
3.0%
4.1%
15.9%
5.7%
7.1%
3.0%
4.1%
15.9%
5.7%
9.3%
1.6%
4.5%
3.8%
9.5%
-2.1%
1.5%
-0.3%
12.1%
-3.9%
BALANCE SHEET AS OF 31st MARCH 2018
Reallocating capital toward domestic operation and to strengthen financial position
The Company has been reallocating capital towards funding its ongoing projects in Indonesia. Part of the steps
includes divestments of the China operations in 2017 and the sale of coal assets.
We have completed auction of land asset of Khalista (Liuzhou) Chemical Industries Ltd., our subsidiary that
produced sorbitol in China, on 27 February 2018. The Company has received Phase I payment of RMB 107 mn
towards compensation for land & buildings and on 27 Feb 2018 the local government has successfully held an
auction for Khalista land for RMB 1,828 mn with Zhonghai announced as the winning bidder. Net gain from disposal
of Khalista assets that recorded in 1Q18 was accounted for Rp 664 bn. We also have completed divestment of BKP
on 27 March 2018 to PT Harum Energy Tbk with net gain of Rp 64 bn. Total net gain from divestment in both
businesses are Rp 728.7 bn.
We have improved our balance sheet towards longer term, which as of end of Mar 18, our total equity stood at Rp
9,963 bn, a 10.4% increase from Rp 9,030 bn at end of 17. With rich cash balance of Rp 1,842 bn, all in all, our net
gearing as of end of Mar 18, stayed at low 0.17x.
Total Assets
Total liabilities
8,959
18,922
8,255
8,251
16,604
16,519
Q1'17
Q2'17
16,904
16,823
Q3'17
Q4'17
7,911
Q1'18
Q1'17
Q2'17
7,794
Q3'17
Q4'17
Q1'18
3
PT AKR Corporindo Tbk
Apr 26, 2018
Total Equity
9,963
8,353
Q1'17
8,608
8,649
Q2'17
Q3'17
9,030
Q4'17
Q1'18
EVENTS & DEVELOPMENTS DURING 3M 2018
▪
▪
▪
▪
AKR has been assigned by BPH Migas to distribute Specific Petroleum Type (JBT) for 5 years period and received
250,000 KL allocation for 2018.
Together with our JV Partner Royal Vopak, PT Jakarta Tank Terminal (JTT) has announced expansion of the tank
terminal in Tanjung Priok by adding 100,000 cbm storage for gasoline, ethanol and biofuel, increasing capacity
of JTT to 350,000 cbm.
Auction of land of Khalista has been successfully held in Feb 18 and we also have completed the divestment of
Bumi Karunia Pertiwi with net gain of Rp 64 bn.
JIIPE was officially inaugurated by the President of Indonesia, Joko Widodo, on March 9th 2018, in Gresik-East Java, and
become one of the industrial estates that included in national strategic projects.
▪
We are going to hold AGM on 3 May 2018 with agenda includes final dividend announcement.
New government Regulation
The Ministry of Energy and Mineral Resources has issued regulation Peraturan Menteri No 21/2018 to tighten
control over the pricing of non-subsidized fuels, due to inflationary concerns. Under the new regulation, all fuel
distributors must obtain the minister’s approval before increasing the prices of gasoline and non-subsidized
petroleum products. This regulation impacts most on the unsubsidized higher octane gasoline, while industrial fuel
and aviation products are exempted. Industrial fuel accounts for approximately 90% of our current petroleum
volume while unsubsidized gasoline accounts less than 5%.
AKRA sees long-term opportunities in the un-subsidized gasoline market due growing number of newer vehicles
that requires higher octane gasoline and low penetration rate of petrol stations. Our JV with BP aims to open its
first non-subsidized petrol station in 2H18.
Financial statements are available to download from the Company’s website at http://www.akr.co.id/
Haryanto Adikoesoemo
President Director
PT AKR Corporindo Tbk
4
PT AKR Corporindo Tbk
Apr 26, 2018
5
PT AKR Corporindo Tbk
Apr 26, 2018
PT AKR Corporindo Tbk
PT AKR Corporindo Tbk (the Company) was formally established in Surabaya in 1977 and was listed on the Indonesian Stock Exchange in 1994.
The Company is Indonesia’s leading integrated supply chain solutions provider and largest private sector distributor of petroleum and basic
chemicals. The Company is also the first private company appointed by the Government of Indonesia to distribute subsidized petroleum. The
Company is a renowned provider of logistics and infrastructure with areas of operations encompassing Indonesia and China. Through a number
of subsidiaries it governs, the Company also operates in the areas of logistic services, manufacturing and coal mining and trading.
Java Integrated Industrial Port Estate
Java Integrated Industrial Port Estate (“JIIPE”) is a project that is designed to be one of the largest integrated industrial, residential and deep sea
port estates with development area totaling 2,933.3 ha. This project through PT Berkah Kawasan Manyar Sejahtera (“BKMS”) will develop the
industrial estate, while its sister company PT Berlian Manyar Sejahtera (“BMS”) will handle the sea port operations and PT AKR Land Development
(an affiliate of AKR) will develop the residential estate. AKR indirectly owns 60% of the company through UEPN, while Pelindo III indirectly owns
40% through BJTI.
JIIPE aims to become a strategically-located industrial estate, complete with supporting facilities and infrastructure. In addition to a deep water
port in the complex, the location has direct access to the major toll road network that connects most cities in East Java, arterial road, railway
system and air transport access (Juanda International Airport). The estate is also located 30 kilometers from the city of Surabaya, the second largest
city in Indonesia. According to the master plan, the total area of the industrial estate is 1,761 ha.
Disclaimer
This communication is solely for the addressee(s) and may contain confidential or privileged information. This publication does not have regard
to specific investment objectives, financial situation and the particular needs of any specific person or entity who may receive this report.
Accordingly, neither we nor any of our affiliates nor persons related to us accept any liability whatsoever for any direct, indirect or consequential
losses or damages that may arise from the use of information or opinions in this publication. Many factors, including those discussed more fully
elsewhere in this release and in PT AKR Corporindo Tbk or its affiliates' filings with the respective regulatory authorities particularly their quarterly
financial statements, annual reports, corporate presentations as well as others, could cause results to differ materially from those stated. Opinions
expressed may be subject to change without notice.
6
Apr 26, 2018
AKRA Posted Robust Revenue Growth in 1Q18 and
Continuously Strengthened its Financial Position
JAKARTA, 26th Apr 2018 – PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ), distributor of Petroleum, Basic
chemicals and provider of Logistic & supply chain services in Indonesia reported robust revenue growth of 34% Y/Y
from Rp 4,341 bn in 1Q17 to Rp 5,834 bn in 1Q18, with growth seen in both petroleum and basic chemical
businesses. AKRA also reported net profit attributable to equity holders of parent entity at Rp 929 bn in 1Q18
compared to Rp258 bn in 1Q17.
In addition to the success of land auction of Khalista’s in Lizhou, China in February 18, we also have completed the
sale of one of our coal assets called PT Bumi Karunia Pertiwi (BKP).
FINANCIAL HIGHLIGHTS
▪
▪
▪
▪
▪
Revenue increased by 34% to Rp 5,834 bn in 1Q18 from Rp 4,341 bn in 1Q17. On Q/Q basis, we saw 20% revenue
growth.
Operating profit came in at Rp 241 bn in 1Q18, up 11% on Q/Q basis, a 29% decrease from the same period of
last year as we recognized forex loss of Rp 7.5 bn in 1Q18 (vs. forex gain of Rp 18.2 bn in 1Q17).
We divested Khalista’s sorbitol manufacturing and Bumi Karunia Pertiwi’s coal with total gain amounting to
Rp728.7 bn in 1Q18.
All in all, our net profit came in at Rp 929 bn in 1Q18 vs Rp 258 bn in 1Q17. EPS (basic) in 1Q18 is Rp 231.88 vs
Rp 64.74 in 1Q17.
We strengthened our balance sheet with strong cash position and net gearing as of Mar 2018 stood at Rp 1,842
bn and 0.17x, respectively. Pefindo has recently raised our debt outlook to “Positive” from previously “Stable”,
while maintained our rating at “idAA-“.
President Director of AKRA, Mr. Haryanto Adikoesoemo, stated;
"During 1Q18, AKRA has been continuously strengthening its businesses to grow further in the future. AKRA revenue
grew by 34% y/y, supported by increase in average selling price of petroleum and Basic chemicals, also new
customers of petroleum. AKRA underwent a change in its asset and investment portfolio during 2017 to gain strong
capital structure. Auction of lands belonged to Khalista, AKRA’s unit of sorbitol manufacturing in China, has been
successfully held in February 2018. The divestment of Company’s coal business PT Bumi Karunia Pertiwi also has
been completed in March 2018. Proceeds of the divestment of both units will be redirected to domestic projects that
we expect to generate higher returns in the longer term.”
REVENUE ANALYSIS
Robust Revenue growth
▪ Revenue increased by 34% Y/Y to Rp 5,834 bn in 1Q18 from Rp 4,341 bn in 1Q17. On Q/Q basis, we saw 20%
revenue growth.
▪ Sales of petroleum rose by 47% Y/Y t Rp 4,247 bn, driven by both higher oil price and volume. Average price of
crude oil (Brent) increased from 55 $/bbl in 1Q17 to 66 $/bbl in 1Q18.
▪ Sales of basic chemical products increased by 29% Y/Y to Rp1,333 bn, mostly due to higher ASP.
PT AKR Corporindo Tbk
▪
▪
Apr 26, 2018
Petroleum contributed 73% to revenue in 1Q18 (66% in 1Q17), while basic chemical contributed 23% (vs 24%
in 1Q17).
We started to book revenue from infrastructure services in JIIPE in 1Q18, despite the absence of land sales from
the industrial estate.
Segment
BBM
Bahan Kimia Dasar
Total Trading & Distribution
Industrial Estate
Others
Total Revenue
1Q18
4,247
1,333
5,580
1
252
5,834
1Q17
2,880
1,037
3,916
115
310
4,341
∆Y/Y
48%
29%
42%
na
-19%
34%
Q4’17
3,064
1,320
4,384
181
294
4,859
1Q18
4,247
1,333
5,580
1
252
5,834
∆Q/Q
39%
1%
27%
na
-14%
20%
Revenue by segment - 3M18
Others
4%
Chemical
23%
Petroleum
73%
UNAUDITED STATEMENT OF INCOME FOR 1Q18
Cost measurements to keep expenses in control
▪ GA & selling expenses at Rp 176 bn were under control at only 3.0% of sales in 1Q18, compared to 3.2% in 1Q17
and 4.1% in 4Q17.
Significant Growth in Net profit and EPS
All in all, our 1Q18 net profit attributable to equity holders of parent entity came in at Rp 929 bn, up significantly
from Rp 258 bn in 1Q17. EPS (basic) is Rp 231.88 vs Rp 64.74 in 1Q17.
2
PT AKR Corporindo Tbk
Apr 26, 2018
INCOME STATEMENT (In Rp bn, except EPS)
Sales and Revenues
Cost of Sales and Revenues
Gross Profit
Operating Profit
Profit from continuing operations before
Income Tax
Tax expense, net
Profit for the period from continuing
operations
Net gain on divestment
Other comprehensive income
Profit for the period attributable to equity
holders of the parent entity
EBITDA
EPS
Gross margin
GA & selling expenses margin
Operating margin
Net margin
EBITDA margin
1Q18
Δ Y/Y
1Q17
1Q18
4Q17
Δ Q/Q
5,834
(5,418)
416
241
4,341
(3,890)
452
340
34%
39%
-8%
-29%
5,834
(5,418)
416
241
4,859
(4,409)
450
217
20%
23%
-8%
11%
230
(43)
337
(48)
-32%
-10%
230
(43)
203
(31)
13%
39%
191
728
10
289
(15)
-34%
na
-165%
191
728
10
189
6
31
1%
na
-69%
929
332
231.88
258
398
64.74
259%
-17%
258%
929
332
231.88
184
464
48.00
405%
-28%
383%
10.4%
3.2%
7.8%
6.0%
9.2%
-3.3%
-0.2%
-3.7%
10.0%
-3.5%
7.1%
3.0%
4.1%
15.9%
5.7%
7.1%
3.0%
4.1%
15.9%
5.7%
9.3%
1.6%
4.5%
3.8%
9.5%
-2.1%
1.5%
-0.3%
12.1%
-3.9%
BALANCE SHEET AS OF 31st MARCH 2018
Reallocating capital toward domestic operation and to strengthen financial position
The Company has been reallocating capital towards funding its ongoing projects in Indonesia. Part of the steps
includes divestments of the China operations in 2017 and the sale of coal assets.
We have completed auction of land asset of Khalista (Liuzhou) Chemical Industries Ltd., our subsidiary that
produced sorbitol in China, on 27 February 2018. The Company has received Phase I payment of RMB 107 mn
towards compensation for land & buildings and on 27 Feb 2018 the local government has successfully held an
auction for Khalista land for RMB 1,828 mn with Zhonghai announced as the winning bidder. Net gain from disposal
of Khalista assets that recorded in 1Q18 was accounted for Rp 664 bn. We also have completed divestment of BKP
on 27 March 2018 to PT Harum Energy Tbk with net gain of Rp 64 bn. Total net gain from divestment in both
businesses are Rp 728.7 bn.
We have improved our balance sheet towards longer term, which as of end of Mar 18, our total equity stood at Rp
9,963 bn, a 10.4% increase from Rp 9,030 bn at end of 17. With rich cash balance of Rp 1,842 bn, all in all, our net
gearing as of end of Mar 18, stayed at low 0.17x.
Total Assets
Total liabilities
8,959
18,922
8,255
8,251
16,604
16,519
Q1'17
Q2'17
16,904
16,823
Q3'17
Q4'17
7,911
Q1'18
Q1'17
Q2'17
7,794
Q3'17
Q4'17
Q1'18
3
PT AKR Corporindo Tbk
Apr 26, 2018
Total Equity
9,963
8,353
Q1'17
8,608
8,649
Q2'17
Q3'17
9,030
Q4'17
Q1'18
EVENTS & DEVELOPMENTS DURING 3M 2018
▪
▪
▪
▪
AKR has been assigned by BPH Migas to distribute Specific Petroleum Type (JBT) for 5 years period and received
250,000 KL allocation for 2018.
Together with our JV Partner Royal Vopak, PT Jakarta Tank Terminal (JTT) has announced expansion of the tank
terminal in Tanjung Priok by adding 100,000 cbm storage for gasoline, ethanol and biofuel, increasing capacity
of JTT to 350,000 cbm.
Auction of land of Khalista has been successfully held in Feb 18 and we also have completed the divestment of
Bumi Karunia Pertiwi with net gain of Rp 64 bn.
JIIPE was officially inaugurated by the President of Indonesia, Joko Widodo, on March 9th 2018, in Gresik-East Java, and
become one of the industrial estates that included in national strategic projects.
▪
We are going to hold AGM on 3 May 2018 with agenda includes final dividend announcement.
New government Regulation
The Ministry of Energy and Mineral Resources has issued regulation Peraturan Menteri No 21/2018 to tighten
control over the pricing of non-subsidized fuels, due to inflationary concerns. Under the new regulation, all fuel
distributors must obtain the minister’s approval before increasing the prices of gasoline and non-subsidized
petroleum products. This regulation impacts most on the unsubsidized higher octane gasoline, while industrial fuel
and aviation products are exempted. Industrial fuel accounts for approximately 90% of our current petroleum
volume while unsubsidized gasoline accounts less than 5%.
AKRA sees long-term opportunities in the un-subsidized gasoline market due growing number of newer vehicles
that requires higher octane gasoline and low penetration rate of petrol stations. Our JV with BP aims to open its
first non-subsidized petrol station in 2H18.
Financial statements are available to download from the Company’s website at http://www.akr.co.id/
Haryanto Adikoesoemo
President Director
PT AKR Corporindo Tbk
4
PT AKR Corporindo Tbk
Apr 26, 2018
5
PT AKR Corporindo Tbk
Apr 26, 2018
PT AKR Corporindo Tbk
PT AKR Corporindo Tbk (the Company) was formally established in Surabaya in 1977 and was listed on the Indonesian Stock Exchange in 1994.
The Company is Indonesia’s leading integrated supply chain solutions provider and largest private sector distributor of petroleum and basic
chemicals. The Company is also the first private company appointed by the Government of Indonesia to distribute subsidized petroleum. The
Company is a renowned provider of logistics and infrastructure with areas of operations encompassing Indonesia and China. Through a number
of subsidiaries it governs, the Company also operates in the areas of logistic services, manufacturing and coal mining and trading.
Java Integrated Industrial Port Estate
Java Integrated Industrial Port Estate (“JIIPE”) is a project that is designed to be one of the largest integrated industrial, residential and deep sea
port estates with development area totaling 2,933.3 ha. This project through PT Berkah Kawasan Manyar Sejahtera (“BKMS”) will develop the
industrial estate, while its sister company PT Berlian Manyar Sejahtera (“BMS”) will handle the sea port operations and PT AKR Land Development
(an affiliate of AKR) will develop the residential estate. AKR indirectly owns 60% of the company through UEPN, while Pelindo III indirectly owns
40% through BJTI.
JIIPE aims to become a strategically-located industrial estate, complete with supporting facilities and infrastructure. In addition to a deep water
port in the complex, the location has direct access to the major toll road network that connects most cities in East Java, arterial road, railway
system and air transport access (Juanda International Airport). The estate is also located 30 kilometers from the city of Surabaya, the second largest
city in Indonesia. According to the master plan, the total area of the industrial estate is 1,761 ha.
Disclaimer
This communication is solely for the addressee(s) and may contain confidential or privileged information. This publication does not have regard
to specific investment objectives, financial situation and the particular needs of any specific person or entity who may receive this report.
Accordingly, neither we nor any of our affiliates nor persons related to us accept any liability whatsoever for any direct, indirect or consequential
losses or damages that may arise from the use of information or opinions in this publication. Many factors, including those discussed more fully
elsewhere in this release and in PT AKR Corporindo Tbk or its affiliates' filings with the respective regulatory authorities particularly their quarterly
financial statements, annual reports, corporate presentations as well as others, could cause results to differ materially from those stated. Opinions
expressed may be subject to change without notice.
6