PT Bakrie & Brothers Tbk. (“BNBR” or “Company”) again succeeded in reducing liabilities by 38% in the third quarter of 2024 to IDR 2.75 trillion compared to the same period in 2023 which amounted to IDR 4.44 trillion. The company also experienced an increase in equity of 62.7% in the third quarter of 2024 to IDR 4.32 trillion compared to the same period in the previous year which amounted to IDR 2.66 trillion.

“Alhamdulillah, we are grateful because this means the Company has a healthier debt ratio, lighter financial burden and stronger cash flow,” explained the President Director & CEO of PT Bakrie & Brothers Tbk., Anindya Novyan Bakrie, after publishing the financial report. third quarter 2024, in Jakarta, Friday (25/10/2024).

Apart from that, the Company also recorded a significant increase in net income in the third quarter of 2024 amounting to 416.8% with a figure of IDR 636.27 billion compared to the same period in the previous year of IDR 123.12 billion. Even though there was a decrease in revenue of 11.6% compared to the same period in the previous year, the Company’s gross profit continued to increase by 6.8% and operating profit increased by 1%.

“The increase in EBITDA compared to the previous period shows the Company’s positive performance, and also a significant increase in net income as a result of the release of one of the Company’s assets which was used to settle debts,” explained Anin.

Corporate Action Shows Results

BNBR Finance Director Roy Hendrajanto M. Sakti added that currently the Company’s balance sheet is much slimmer and healthier. After several years of ongoing restructuring processes, followed by a quasi-reorganization corporate action which became effective on August 22 2024, in the near future the Company will also complete the final stage of corporate action in the form of a private placement.

“Of course, to carry out this private placement the Company will hold an Extraordinary General Meeting of Shareholders (GMS) to seek approval from shareholders. “Currently, this debt conversion private placement is the last on the Company’s agenda, because with the completion of this debt restructuring, BNBR no longer has material long-term obligations that are overdue,” said Roy.

With the completion of this corporate action, the Company’s debt to assets ratio fell to 39% from 63% at the end of last year. Meanwhile, the company’s debt to equity ratio also dropped significantly to 64% from 167% at the end of 2023. As of September 30, the company managed to record retained earnings of IDR 636.3 billion from the previous deficit of IDR 19.5 trillion which had been successfully eliminated through a quasi-reorganization corporate action.    “The series of corporate actions carried out so far have been seen to produce positive results, and in the near future we will arrive at the final stage of restructuring where the results can be reflected in the Company’s balance sheet.  It can be seen that the Company’s balance sheet has a very good liability and equity structure. “After that, the Company will focus on strengthening the operational side of the business in all sectors in the Company’s business units, including developing new businesses in strategic projects,” said Roy.