Successfully Completing Debt Restructuring, BNBR Records EBITDA Increase of 81%
PT Bakrie & Brothers Tbk. (“BNBR”) continues to accelerate efforts to transition towards sustainable business, especially in the transportation electrification industry sector, the new & renewable energy (EBT) or green energy industry, and the environmentally friendly building construction industry. This effort further strengthens the company’s commitment to supporting Indonesia’s 2060 net zero emission (NZE) target.
“While continuing to manage a number of business units which have been running well, we consistently continue energy transition efforts that are oriented towards sustainable business concepts in accordance with ESG (Environment, Social, Governance) principles,” said the President Director & CEO BNBR, Anindya Novyan Bakrie, during the BNBR Annual Public Expose, in Jakarta, Tuesday (5/12/2023).
Anindya explained that currently the Company sees many possibilities to accelerate the pace of the Company’s transition towards a sustainable business. At BNBR, this effort can be seen, among other things, from the continued development of PT VKTR Teknologi Mobilitas Tbk. (“VKTR”) a business unit in the field of transportation electrification, PT Helio Synar Energi (“Helio”) a business unit in the field of new and renewable energy, and PT Modula Sustainability Indonesia (“Modula”) which invests in the latest and friendliest 3-D printing technology. environment, in the field of building construction.
The Company’s transition towards a sustainable business is increasingly driven by positive performance in the third quarter of 2023. Finance Director Roy Hendrajanto M. Sakti said, BNBR recorded an increase in net income of 25% on an annual basis or year-on-year (YoY) from net income in the same period in the previous year. The company also managed to record net income of IDR 3.079 trillion, an increase of 32% compared to the same period in the previous year. EBITDA was also recorded as having increased by 81%, from the previous period of IDR 152 billion, to IDR 274 billion in the third quarter of 2023.
“This achievement of increasing net income was supported by positive records in income from a number of the Company’s business units,” explained Roy, adding that the Company’s assets had increased significantly from IDR 17.46 trillion in the previous period to IDR 20.10 trillion in the third quarter of 2023. Meanwhile Equity also increased from the previous IDR 1.53 trillion, to IDR 2.36 trillion in the third quarter of 2023 due to the Company’s net profit and VKTR share premium during the IPO and current year’s profit.
Roy explained that the Company will be able to consistently make various breakthroughs to improve its financial position, especially by completing the debt restructuring process and implementing efficiency programs at the operational level of subsidiaries.
“The debt restructuring efforts that have been carried out over the past few years have produced good results. “In early December 2023, the Company again succeeded in restructuring debt amounting to IDR 13.23 trillion, so that we can see a drastic improvement in the Company’s balance sheet to become much healthier,” said Roy.
The Company has also carried out the conversion of Mandatory Convertible Bonds (“OWK”) with the number of new shares resulting from the conversion of 99,527,840,300 series E ordinary shares with a nominal value of Rp. 64, per share. With the addition of these new shares, the Company’s issued and paid-up capital, which previously amounted to 22,084,484,209 shares, became 121,612,324,509 shares after the PMTHMETD was implemented.