The Jakarta Post
Publicly listed fuel distributor and logistics company PT AKR Corporindo recorded a net profit jump in the first quarter as it prepared for business disruptions brought about by the COVID-19 outbreak.
The company pocketed Rp 277.77 billion (US$18.03 million) in net profit, up 13 percent year-on-year (yoy), in the first three months of this year as it recorded a significant increase in revenue during the period.
“We maintained growth momentum in the first quarter of 2020, thanks to contribution from the trading and distribution segments, as well as the sale of land in our industrial estate,” AKR president director Haryanto Adikoesoemo said in a statement on Tuesday.
Stocks of AKR, traded on the Indonesia Stock Exchange (IDX) under the code "AKRA", fell 1.32 percent at 10:36 a.m. Jakarta time to Rp 2,240 versus a 0.24 percent increase recorded by main gauge the Jakarta Composite Index (JCI).
Throughout January to March, AKR’s revenue jumped by almost 26 percent annually to Rp 6.35 trillion as revenue from the fuel distribution business increased by 37 percent yoy to Rp 4.85 trillion, mostly supported by distribution for industrial clients.
The company also attributed the growth in revenue to rising logistics revenue that was up by 30 percent yoy to Rp 214 billion. In the meantime, the company also pocketed Rp 140 billion from its industrial estate in Gresik, East Java.
The increase in revenue from multiple segments was able to offset the company’s declining chemical sales that dropped by 13 percent yoy to Rp 1.04 trillion due to a lower average selling price, despite increasing sales volume of 8 percent.
Going forward, the company is bracing for challenges amid the COVID-19 outbreak by implementing a robust business continuity plan for its logistics and supply chain segment, said Haryanto.
“We are taking necessary steps considering the slowing gross domestic product [GDP] growth environment and global oil market,” he said.
The government expects Indonesia’s economic growth to reach 2.3 percent this year under the baseline scenario and contract 0.4 percent under the worst case scenario as the outbreak disrupts business activity and hits consumer demand.
Global oil price, meanwhile, has plummeted and touched the negative territory for the first time in history earlier this month amid rising production and plunging demand.
AKR also closely assessed the slowdown in demand, price volatility and potential supply chain disruption in running its business.
“These measures will guide the company in doing business until the economy recovers,” he said.