The profits of publicly listed petrochemical giant Chandra Asri Petrochemical (TPIA) surged by 181 percent year-on-year (yoy) to US$107.8 million in the first three months of 2017 from $38.4 million in the same period last year, according to a statement released by the company on Tuesday.

Net revenue increased by 77 percent to $632.7 million from $358.2 million in the same period.

“Most of the increase in net revenue comes from 37 percent sales volume to 554,000 tons amid higher ethylene production capacity and the profit from good petrochemical margins,” read the statement.

(Read also: Chandra Asri pays out $150 million in dividends)

The relatively low price of oil as a raw material for the company and the high price of end products lead to good profit margins, especially for olefins and butadiene products, or raw materials for various plastic articles.

The firm’s gross profit margin was 28 percent in this first quarter of this year compared to 17 percent in the same period in 2016.

Chandra Asri plans several expansions in the next five years, including a 37 percent increase in butadiene production capacity to 137,000 tons and the construction of tire factory PT Synthetic Rubber Indonesia, a joint venture between Chandra Asri's wholly owned subsidiary, PT Petrokimia Butadiene Indonesia, and France-based tiremaker Michelin.

Chandra Asri also plans to increase its polypropylene production capacity by 20.8 percent to 580,000 tons and polyethylene production capacity by 119 percent to 736,000 tons. (bbn)