PT. Chandra Asri Petrochemical Tbk. (CAP) reported a net loss in the first half of 2020 but said demand for its products had begun a recovery in the second quarter, compared to the first quarter of 2020, particularly from China and other Northeast Asian countries which saw firming polymer demand.
The Indonesian petrochemical manufacturer recorded a net loss of $29.86 million in the first half of 2020, compared to a net profit of $32.92 million in the same period last year. CAP’s net income declined 20.1% to $841.4 million from $1.05 billion a year earlier. The decline is attributed to the average sales price, which fell to $777/ton from $996/ton over the same period.
CAP director Suryandi in a written statement said falling oil prices pushed naphtha cost lower and hence, increased polymer spread by 20%-30% in June 2020. The average price of ethylene dropped to $646/ton in the first half of 2020 from $906/ton a year earlier, while average polyethylene price fell to $824/ton from $1.170/ton over the same period.
Suryandi noted the recovery in business activity in the second quarter helped the company to maintain a healthy balance sheet. The company’s liquid assets stood at $931 million in the quarter, including $649 million cash and cash equivalents, rising from $880 million and $624 million, respectively in the first quarter.
