Net Income Increases 128.62 Percent, EBITDA Triples
Source: Humas BNBR | 13 Dec 2019
PT Bakrie & Brothers Tbk (“Company” or “BNBR”) continued to record positive performance. In the third quarter of 2019, the Company made a net profit of Rp.349,496 billion, an increase of 128.62 percent compared to the third quarter of 2018 which still recorded a loss of Rp.1,221 trillion. EBITDA (Earning Before Interest, Taxes, Depreciation, and Amortization) also tripled in the third quarter of 2019 of Rp.207 billion compared to the same period in 2018 of Rp.50 billion.
In the third quarter of this year BNBR also managed to book total assets of Rp 15.29 trillion compared to the same period in 2018 of Rp 14.34 trillion. The 7% increase in assets was mainly due to an increase in short-term investment and investment in associates and joint control entities. In addition, the Company has also recorded positive equity returns since the end of 2018 of Rp 2.7 trillion and increased 18% in the third quarter of 2019 to Rp 3.17 trillion. The Company’s revenue also rose 6.16 percent to Rp.2,473,277 trillion in the third quarter of 2019 from the same period in 2018 of Rp2,330 trillion.
“This is a bounce back moment for BNBR, where equity has returned to a positive position since the end of 2018. Even more so if we look at net income. Now it has turned around, from a loss since the first semester of 2018 ago, “said Director of BNBR, Anindya Novyan Bakrie in Jakarta, Friday (12/13/2019).
In the Company’s Quarter III 2019 Financial Report, BNBR financial indicators show better achievements compared to the third quarter of last year. Besides succeeding in making a net profit (net profit) of Rp. 349.496 billion, the Company in this period also recorded an EBITDA that tripled in the first nine months of 2019 amounting to Rp. 207 billion compared to the same period in 2018 amounting to Rp.50 billion.
“The increase in the Company’s profit in the third quarter of this year is a good record. Because, last year the Company still recorded a loss of Rp. 1.2 trillion more, “said Anindya Bakrie.
Furthermore, Anin also explained that there is a strong manufacturing base in the business unit that ‘lifted the spirit’ of the Company since the last few months. According to Anin, the good performance came from PT Bakrie Metal Industries (BMI), PT Bakrie Pipe Industries (BPI), and PT Bakrie Autoparts (BA). BMI has produced steel bridges throughout Indonesia in a total of 26.4 km, equivalent to the length of the Sunda Strait, and is a reference for almost all steel frame bridges in all provinces.
Meanwhile, BPI in 2017-2018 supplies up to 34% of the total electricity needs of the PLN steel poles. As for BA, currently pioneering the national electric vehicle industry through the development of electric buses in collaboration with BYD Auto.
Since the end of December 2018 until mid-2019, several business units have performed better compared to previous times,” he said.
As is well known, in recent years BNBR has consistently made various efforts to improve its financial position, primarily by restructuring debt and carrying out a program of cost reduction and massive efficiency at the operational level of its subsidiaries. “Gradually, we can improve and improve the performance of BNBR. Debt burden is consistently decreasing and asset values are increasing. Last year, we also converted part of the debt into shares and this helped significantly reduce our burden, “Anin explained.
Recorded in the Financial Statements, the Company’s debt and interest expenses were indeed reduced from Rp.344.630 billion in the third quarter of 2018 to only Rp.129.121 billion in the same period this year. “This is one of the evidences and fruits of the Company’s financial restructuring success in recent years,” Anindya said again.
The CEO of BNBR also mentioned the direction of the company’s policy going forward, which will focus on the principle of sustainability growth. “Yes. Indeed, we strive to continue to grow in a sustainable manner, focusing on Environmental, Social and Governance factors, “he concluded.
Achievements and Business Development of Subsidiaries
PT Bakrie Autoparts (BA), the Company’s business unit that manufactures automotive components, experienced an EBITDA increase of 18 percent in 2018 compared to the same period in 2017. This year BA is trying to add a variant of products with larger automotive components and continue to develop the general market casting. Going forward, along with the increase in infrastructure projects, it is predicted to increase the demand for car fleets, and boost demand in the regions. To improve its performance, BA will penetrate the passenger vehicle market which accounts for up to 77 percent of the total domestic market in 2018.
For this reason, BA will increase production capacity utilities, enter the production of passenger vehicle components and replacement component markets, increase the non-automotive segment, and develop electric vehicles for the use of DKI Jakarta, Central Java, East Java and Bali Provinces.
PT Bakrie Metal Industries (BMI), the Company’s business unit that manufactures various steel products, experienced an increase in sales by 18 percent in 2018. Going forward, the business unit will increase capacity in the EPC (engineering, procurement, construction), non-oil and gas construction segment, capacity of non-oil and gas steel pipes for national construction such as roads and power plants, and the addition of product variants in the form of spiral pipes to support the infrastructure industry sector.
While PT Bakrie Building Industries (BBI), the Company’s business unit that manufactures various building materials, also continues to make a series of improvements, in producing a number of types of useful building materials, while continuing to improve the production process. Going forward, BBI will experience a transition from manufacturing to being a service provider. In addition, this business unit will also expand the market to the supporting infrastructure industry.
As for infrastructure projects, there are a number of business developments, both in the Kalija Phase 2 project, the Cimanggis-Cibitung Toll Road, the Tanjung Jati A PLTU, and PT Multi Kontrol Nusantara. Currently, the Company is conducting a study of the Kalija Phase 2 Project. The project is planned to be part of the 1,732 kilometer Trans-Kalimantan gas transmission pipeline project, which is very likely to become one of the National Strategic Projects (PSN).
Meanwhile, for the Cimanggis-Cibitung Toll Road project, in collaboration with PT Waskita Toll Road (a subsidiary of PT Waskita Karya Tbk), the Company is conducting the construction of Section I, which is targeted to be completed in December 2019 and will start operating in January 2020. The acquisition of land for Section II in Bogor and Bekasi districts has reached 80% of the total land.
PLTU Tanjung Jati A Project 2x660MW, the company cooperates with YTL Jawa Energy BV (a subsidiary of YTL Corporation Berhad). The electricity tariff negotiation process with PLN has been completed and the land acquisition process for the construction of the power plant and transmission network has been 99% complete.
In the field of technology and communication infrastructure, through PT Multi Kontrol Nusantara (MKN), the Company has become one of the contractors for the Palapa Ring project, a Government project for the construction of telecommunications and internet network infrastructure throughout Indonesia. In the future development plan, MKN will also become a provider of Internet of Things (IOT) services for the manufacturing, mining and utilities industries.
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