Asset Divestment, Strengthening Bottom Line
We estimate AKRA to post the net profit of IDR905 billion (+446% q-q) and the net profit margin of 14.6% in 3Q18 (vs. the net profit margin of 4.4% in 2Q18). Its buoyant net profit was underpinned by the proceeds from the remaining payment of its subsidiary’ assets sold for IDR787 billion on August 31st, 2018. The divestment in its underperforming subsidiary is a positive strategy for business efficiencies and development of Java Integrated Industrial and Port Estate (JIIPE).
Petroleum, AKRA’s Backbone in 3Q18
We are optimistic that AKRA was capable of posting the growth of 15% q-q and 47% y-y to IDR6,19 trillion in 3Q18. The growth was driven by factors as follows : 1) The increment of 12% y-y in petroleum sales volumes, stemming from the increment in demands by mining and coal shipping companies; 2) The surge of 44% y-y to IDR8,800 in ASP, underlined by the trend of higher WTI crude price of USD73.25 per barrel; 3) The government policy on the hike of IDR400-IDR600 per liter in AKRA’s refined petroleum products prices.
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