In 2019, BNBR Earned More Than IDR 800 Billion In Profit
Source: Humas BNBR | 30 Mar 2020
PT Bakrie & Brothers Tbk (“the Company” or “BNBR”) managed to record positive financial performance throughout 2019. After not recording a profit in previous years, the Company in 2019 managed to achieve a net profit of more than IDR 800 billion, while in 2018 the Company still recorded a loss of IDR 1.25 trillion.
In the 2019 Full-Year Financial Report, BNBR’s 2019 financial indicators show better results compared to 2018. “In terms of profitability, the Company managed to score significant positive values in 2019, after recording a loss of more than IDR 1 trillion in the previous year. . In terms of revenue, the company’s revenue in 2019 was relatively stable compared to 2018. Furthermore, we also managed to record efficiency in COGS, operating expenses and other financial expenses. Of course this is exciting, ”said BNBR President Director, Anindya Novyan Bakrie in Jakarta, Monday (30/3/2020).
Anindya believes BNBR will continue to record better performance going forward with the support of a number of strategic projects. As is known, the Company is currently seriously working on a number of prospective projects, such as the Tanjung Jati power plant construction project, a gas pipeline project in Kalimantan, toll road construction, and an electric bus development project.
In recent years, BNBR has also consistently made various efforts to improve its financial position, primarily by restructuring debt and implementing massive cost reduction and efficiency programs at the operational level of its subsidiaries. “Gradually, we have managed to improve and improve BNBR’s performance. The debt burden has consistently decreased and the asset value has increased, ”said Anindya Bakrie.
As recorded in the Financial Statements, the Company’s financial expenses and interest have indeed decreased from Rp.350 billion in 2018 to only Rp.175 billion in 2019. “This is one of the results of the Company’s debt restructuring in the last few years,” said Anindya again.
2020, the Year of the Challenge
Furthermore, Anindya Bakrie expressed his hopes in facing 2020. “We estimate that 2020 will be a year full of challenges, not only for Bakrie & Brothers, but also for the business world in general. Various macro factors that affect the world, also affect us in Indonesia; ranging from trade wars, oil price fluctuations, to the depressed rupiah exchange rate, as well as the instability of the world supply chain. ” Anindya also mentioned about the impact of the spread of the corona virus on the business world, “We still cannot calculate with certainty the extent of the consequences. What is clear is that the operations of our companies are currently slightly disrupted, and several projects have the potential to be delayed.”
Anindya then explained about the company’s plans in 2020, especially on several strategic projects that the company will run. One of them is the Tanjung Jati A power plant construction project in West Java of 2×660 MW. “The Business Viability Guarantee Letter from the Indonesian government has been issued recently, and will help the financial closure process to be completed this year. Land acquisition for this project has also been completely completed, more than 200 hectares, “said Anindya. In addition, he stated that an EPC contractor for this work had also been appointed.
As the winner of the auction for special rights for the Kalimantan natural gas transmission segment, the Company also stated that it is ready to carry out the construction of the gas pipeline network that has been determined by the government as one of the national strategic projects. “We are preparing to work on the construction from Bontang, East Kalimantan to Takisung, South Kalimantan, with a distance of about 600 kilometers,” explained Anindya Bakrie.
In particular, Anindya Bakrie also touched on the progress of the electric bus project being developed by the BNBR subsidiary, PT Bakrie Autoparts. “Alhamdulillah, our electric bus has completed a series of tests and has met all the technical requirements of TransJakarta. The next step, we will prepare the procurement of several new bus units for TransJakarta, and undergo the pilot project stage in Jakarta, “continued Anindya.
Meanwhile, a subsidiary of BNBR that is working on toll road infrastructure projects, PT Cimanggis-Cibitung Tollways, is now also “speeding up” to complete the target set by the government. “The first phase is planned to function before Eid 2020, along 3.2 kilometers. The total length of this toll road reaches 26 kilometers, and is part of the Jakarta Outer Ring 2 Toll Road project, “explained Anindya. The second phase of this project has been completed by more than 70 percent, and the entire project is expected to be completed in the next year.
The other BNBR subsidiaries also scored well. PT Bakrie Pipe Industries (BPI), the Company’s business unit that produces steel pipes, was able to record revenue of Rp. 1.8 trillion, an increase of 12 percent compared to 2018 which amounted to Rp. 1.6 trillion. BPI is currently getting a number of new oil & gas projects, including the procurement of pipelines for Saka Energy in the East Java region and the Java I Power Plant (IPP Jawa I) project. These two projects further strengthen the multi-year pipeline procurement project for Pertamina’s downstream (downstream) business which has been rolling since the end of 2017 and will be completed by the end of 2020.
Closing the conversation, Anindya Bakrie expressed his optimism in facing the challenges ahead. “I say again, this year will not be easy for us. However, we are sure that our business will continue to grow. Many things make us optimistic and excited about it. Hopefully everything can go according to expectations.”
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