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Jakarta Post

Ancora losses widen in first half of 2017

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, August 31, 2017   /   11:20 am
Ancora losses widen in first half of 2017 A project site of PT Ancora Indonesia Resources (kontan.co.id/File)

Publicly listed natural resources company Ancora Indonesia Resources (AIR) suffered a loss of US$5.9 million in the first half of 2017, swelling by 41 percent from the $4.19-million loss in the corresponding period of last year.

AIR president director Teddy Kusumah Somantri attributed the loss to the declining performance of its subsidiary PT Multi Nitrotama Kimia (MNK), which produces ammonium nitrate, a raw material used to produce explosives for mining.

The company’s gross profit declined by 90 percent from $4.2 million in the first half of last year to only $418,000.

"MNK is still putting a heavy burden [on us]. PT Bormindo Nusantara (another subsidiary) is still good and still drilling a number wells," he said in Jakarta on Wednesday, adding that the drilling was for state-owned energy company Pertamina.

After experiencing huge losses in its two mining services subsidiaries, Ancora plans to explore new business opportunities by acquiring gold and minerals mining sites, but Teddy refused to divulge details about the plan.

"There are plans, but we cannot discuss them yet, because we are currently still considering our options of the sites and the funding for the acquisitions," Teddy said.

Despite its poor performance, the price of the company’s shares at the Indonesia Stock Exchange (IDX) surged to a high of Rp 292 during Wednesday’s trading session and closed at Rp 248. (dis/bbn)