The Jakarta Post
Listed investment company PT Bakrie & Brothers (BNBR) saw its net profit fall at the end of the second quarter of the year, following the divestment of stake in its main subsidiary.
According to its financial report, submitted to the Indonesia Stock Exchange (IDX) on Wednesday, the business arm of the politically wired Bakrie family reported Rp 8.36 billion (US$811,000) in net profits during the January-June period of the year, nosediving by nearly 100 percent from Rp 214.35 billion in the same period last year.
The plunging profit was particularly attributed to 83 percent dive in its top line to Rp 1.95 trillion in the first six months of the year, compared to Rp 11.39 trillion year-on-year.
'The revenue declined compared to the first half 2012 due to de-consolidation of Bakrie Petroleum International Pte Ltd and its subsidiary,' BNBR president director Bobby Gafur Umar said in a written statement.
In September 2012, BNBR sold its 10 percent stake in Bakrie Petroleum International to Altex Investment Ltd.
Following the deal, BNBR's ownership in Bakrie Petroleum International dropped to 41 percent and consequently made the company de-consolidate the subsidiary into its financial report.
Bakrie Petroleum International is the owner of 95 percent stake in oil trading firm PT Petromine Energy Trading.
Despite the declining profit, BNBR claimed a growing business run by its 99.99 percent-owned subsidiaries PT Bakrie Building Industries and PT Bakrie Pipe Industries.
Bakrie Building Industries booked Rp 380.73 billion in revenue in the first half of the year, increasing by around 23 percent year on year, BNBR finance director Eddy Soeparno revealed.
Meanwhile, Bakrie Pipe Industries reaped Rp 751.92 billion in revenue in the first six months of the year, inching up by around 7 percent compared to the same period last year, he said.
Neither bidding nor offering was made for shares in BNBR, which stood at Rp 50 on Wednesday.
The shares have been steady at that level ' the lowest price allowed on the bourse ' since November last year.
Another firm controlled by the Bakrie family, PT Bakrie Telecom (BTEL), is struggling with its finances.
BTEL, with CDMA-based telecommunication services, booked Rp 1.11 trillion in revenue during the January-June period of the year, a slight 0.5 percent drop compared to Rp 1.12 trillion year-on-year.
The company managed to press down its operational costs by around 28 percent and in turn recorded Rp 293 billion in net loss in the first half of the year.
The loss was smaller than the Rp 750 billion net loss recorded in the first half of last year.
The best performer under the Bakrie group could be media company PT Visi Media Asia (VIVA), whose net profit jumped 61 percent to Rp 27.9 billion in the first half of the year compared to the same
period last year.
The increase was supported by a 32 percent growth in revenue to Rp 721.8 billion in the first half year-on-year.
Shares in BTEL only traded three times, according to figures from the bourse. The shares were unchanged at Rp 50 apiece and have been at that level since February.
Shares in VIVA were closed at Rp 335 apiece on Wednesday, declining by 1.47 percent from a day earlier.