State-owned steelmaker Krakatau Steel reported its first profit in eight years, thanks to its continuous measures to lower expenses.

The company booked US$74.1 million in profit in the first quarter this year, a major switch from the $62.3 million loss it suffered in the same period last year, as its cost of revenue as well as general and administrative expenses dropped 39.8 percent and 41.5 percent respectively.

Krakatau Steel president director Silmy Karim attributed the positive performance to the company’s concerted move to improve its performance since last year.

“The company has taken several measures to improve its performance such as through [debt] restructuring and transformation,” he said in a statement on Friday.

Earlier this year, Krakatau Steel received the green light from its creditors, mainly local banks such as state-owned Bank Mandiri and Bank Negara Indonesia, to restructure its loans totaling $2 billion in its bid to avoid bankruptcy.

Silmy said earlier this year that the debt restructuring would cut interest payments to $466 million from $847 million. It is also expected to slash costs by around $685 million until 2027.

The steelmaker also mentioned that the move to optimize its workforce, lower energy costs and slash spare part costs also contributed to the profit.

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