TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
GGRP unveils strategic road map to produce lowest-carbon emission steel in Asia
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
GGRP corporate secretary Paulus Khierawan (from left), president director Fedaus and vice president and finance director Roymond Wong during a recent public expose.
P
T Gunung Raja Paksi (GGRP), one of Indonesia's largest private steel producers, has revealed its strategy to become Asia's leading low-carbon steel manufacturer and reassured shareholders about its financial stability following recent stock price volatility.
To meet the global steel industry’s goal of achieving net zero by 2050, GGRP as a low-carbon steel pioneer will implement a number of measures, including advancing production technology by modifying its electric arc furnace (EAF) technology to reduce energy consumption.
In addition, the company will optimize scrap utilization as a raw material, expand export markets for low-carbon steel plate and track emissions across its products.
GGRP’s transformation into a low-carbon steel leader is projected to deliver long-term value to shareholders and ensure its competitiveness in global markets, to meet the growing demand for premium low-carbon steel products while contributing to Indonesia’s Net Zero emission target by 2060.
As of September 2024, GGRP reported a solid financial performance despite market fluctuations. The company recorded a significant increase in EBITDA from continuing operations to reach US$50.1 million, reflecting 54.6 percent year-on-year growth.
Additionally, profit before tax from continuing operations rose to $29.6 million, an increase of 553.2 percent, while net profit from continuing operations soared by 780.8 percent to $31 million compared with the same period last year.
In the same period, the company successfully reduced its liabilities by 58.4 percent, while equity grew by 5.6 percent. GGRP's financial resilience is evident from its strong debt ratios, with a Debt to Equity Ratio (DER) of 0.13x and a Debt Service Coverage Ratio (DSCR) of 5.74x, highlighting its robust capacity to meet financial obligations.
The company clarified that the recent stock price fluctuations were due to a capital reduction initiative approved during the Extraordinary General Meeting of Shareholders on July 26. This reduction lowered the nominal value of GGRP shares from Rp 500 to Rp 140 per share, with the difference returned to shareholders on Nov. 8.
GGRP emphasized that this adjustment does not reflect any changes in its financial performance, nor are there any material events or information affecting its business continuity.
