- Revenue of US$2,385 million in FY 2022
- FY 2022 Ebitda Of US$5.3 Million
- Strong liquidity pool of US$2.67 Billion in FY 2022
According to the company’s website news release on March 31, 2023, PT Chandra Asri Petrochemical Tbk (IDX: TPIA) released its audited consolidated financial statements for the full year of 2022.
The Company’s Director, Suryandi, commented:
“2022 was an exceptionally challenging year for the petrochemical industry. The global macroeconomic environment and trade flows were affected by unprecedented supply and demand disruptions, considering China’s prolonged lockdowns, an inflationary environment with rapidly rising interest rates, and the ongoing Russia–Ukraine war. High oil prices, and low product demand, led to extremely compressed petrochemical margins.
Notwithstanding the challenging market conditions, the Company booked Net Revenues of US$2,385 million, only marginally down 7.6% from the same period last year. The Company managed to breakeven on a cash basis with a positive Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of US$5.3 million, which was much stronger performance than comparable peers due to our market leading position. Net Loss After Tax for the year was US$149.4 million.
To navigate through the ongoing volatility, the Company continues to maintain a prudent financial policy and a robust balance sheet, with a US$2,673.9 million liquidity pool consisting of US$1,404.0 million cash and cash equivalents, US$876.4 million marketable securities, and US$393.5 million available committed revolving credit facilities.
The Company made tremendous strides on the ESG front. The Company launched a holistic ESG Roadmap Framework to underpin its collective ESG efforts. We also obtained a rating from Sustainalytics, the global ESG rating and research institute, placing the Company in the top 1 (one) percentile of its comparable industry.
On 30 December 2022, the Company signed a Conditional Share and Purchase Agreement (CSPA) with Krakatau Steel for the acquisition of a 70% equity stake in Krakatau Daya Listrik (PT KDL, the electricity business) and 49% equity stake in Krakatau Tirta Industri (PT KTI, the water business). This transaction was successfully executed on 27 February 2023, after the approval of the shareholders and fulfilment of customary conditions.
This expansion further enhances Chandra Asri’s business model fundamentals and unlocks many attractive synergies. It enables the diversification and broadening of the Company’s revenue base, into infrastructure utility assets, and strengthens our strategic capabilities in our core market. It is fully in sync with the expansion plans we have lined up for our CAP 2 second petrochemical complex, as we continue to grow and expand to serve our customers in the attractive Indonesian market.”
FY 2022 FINANCIAL HIGHLIGHTS:
• Net Revenues declined by 7.6% YoY to US$2,384.6 million from US$2,580.4 million in FY 2021 affected by external supply – demand disruption that leads to lower overall sales volume for the year.
• Cost of Revenues increased by 7.6% YoY to US$2,395.5 million from US$2,235.4 million in FY 2021 mainly due to higher average feedstock price with Naphtha averages at US$814/T for the year compared to an average of US$659/T in FY 2021 on the back of a 40% increase in Brent Crude prices during FY 2022 to an average of US$99/bbl compared to an average of US$71/bbl in FY 2021.
• Notwithstanding a positive EBITDA of US$5.3 million ahead of comparable peers, the Company recorded FY 2022 Net Loss after Tax of US$149.4 million.
FINANCIAL PERFORMANCE ANALYSIS
Net Revenues
Net Revenues for the full year were booked at US$2,384.6 million, down from US$2,580.4 million in FY 2021 affected by external supply – demand disruption that leads to lower overall sales volume for the year. FY 2022 sales volume was at 1,909 KT from 2,211 KT in FY 2021.
Cost of Revenues
Cost of Revenues increased by 7.6% YoY to US$2,395.5 million from US$2,235.4 million in FY 2021 mainly due to higher average feedstock price with Naphtha averages at US$814/T for the year compared to an average of US$659/T in FY 2021 on the back of a 40% increase in Brent Crude prices during FY 2022 to an average of US$99/bbl compared to an average of US$71/bbl in FY 2021.
EBITDA
Drop in topline performance, higher cost of revenues followed by tighter petrochemical margin driven by macro headwinds due to the Russia-Ukraine situation, COVID-lockdowns in China and global uncertainties, has resulted in the Company’s EBITDA declining to US$5.3 million over FY 2022 vs US$356.2 million in FY 2021.
Net Loss (Profit) after Tax
Following the conditions mentioned above, the Company recorded US$149.4 million of Net Loss after Tax in FY 2022 compared to US$151.9 million Net Profit after Tax in FY 2021
Total Assets
The Company booked Total Assets of US$4,929.3 million as of 31 December 2022, decreased by 1.3% from US$4,993.1 million as of 31 December 2021.
Total Liabilities
The Company recorded slightly higher Total Liabilities of US$2,120.8 million on December 31, 2022 from US$2,060.6 million on 31 December 2021.
As of 31 December 2022, the Company had a total interest-bearing debt position of US$1,471.1 million, against cash and cash equivalents balance of US$1,404.0 million, resulting in an overall net debt position of US$67.1 million. Net Debt to EBITDA (LTM) stood at -8.2x.
Cash Flows (Used in)/Provided by Operating Activities
Net cash used in operating activities during FY 2022 was US$249.4 million against US$221.9 million net cash provided by operating activities in FY 2021 largely due to higher payments made to suppliers for feedstock purchases and inventories during the period, as part of various efforts to optimize our overall working capital, combined with declining EBITDA.
Cash Flows (Used in)/Provided by Investing Activities
Net cash used in investing activities was US$291.0 million compared to net cash used in investing activities at US$695.8 million in FY 2021. The Company had higher capex spending during the period amounting to US$114.2 million, largely as part of the ongoing CAP 2 Front End Engineering Design process as well as maintenances for Butadiene, Polypropylene, and Styrene Monomer plants.
Cash Flows (Used in)/Provided by Financing Activities
Net cash provided by financing activities was booked at US$365.2 million against US$1,134.2 million of net cash provided by financing activities in FY 2021 due to proceeds from new term loan facilities coupled with IDR bond issuances, alongside principal repayment of JBIC loan facilities and IDR bonds, as part of proactive efforts to optimize the Company’s overall weighted average cost of financing and capital structure.
About Chandra Asri:
Chandra Asri, a subsidiary of PT Barito Pacific Tbk, is Indonesia’s largest integrated petrochemical company producing olefins and polyolefins. Chandra Asri’s state-ofthe-art facility and infrastructure are located in Cilegon and Serang, in Banten province in Java. Chandra Asri operates the country’s only naphtha cracker, and is the sole producer of ethylene, styrene monomer, butadiene and MTBE/B1 in Indonesia. In addition, Chandra Asri is also the largest polyolefins producer in Indonesia, producing raw materials and base petrochemical products used for packaging products, pipes, automotive, electronics, and consumer goods in support of Indonesia’s growth and industrialization ambitions.
