Jakarta. Diversified petrochemical company Barito Pacific (BRPT), owned by conglomerate Prajogo Pangestu, reported consolidated revenue of $619 million (approximately Rp 1 trillion) in the first quarter of 2024, marking a 4.9 percent year-on-year decline. Similarly, net profit dropped by 74.5 percent year-on-year to $14 million.

"The results for the first three months of 2024 reflect continued fluctuations in the global petrochemical sector, exacerbated by increasing geopolitical tensions, thereby weakening sentiment. However, stable operational revenue from the energy segment managed to offset these negative impacts," said Agus Pangestu, President Director of Barito Pacific and son of Prajogo Pangestu, in a statement on Wednesday.

He emphasized the company's vigilance in facing this volatility by prioritizing caution while maintaining financial resilience to seize new growth opportunities. "This approach supports us in maintaining our market-leading position in the long term and a robust group profile," added Agus Pangestu.

Furthermore, he explained that the decline in consolidated net profit in the first quarter of 2024 was mainly due to the continued cycle of declining selling prices, resulting in decreased revenue and lower spreads. This trend is evident in the company's EBITDA, which decreased to $135 million from $189 million. Consequently, the margin decreased to 21.8 percent from 29.1 percent.

Meanwhile, the decline in consolidated net revenue was primarily triggered by a 4.3 percent year-on-year decrease in net revenue from the petrochemical business to $472 million. This decline is consistent with disruptions in global supply and demand, leading to lower sales volumes. Additionally, energy revenue decreased by 5.8 percent year-on-year to $145 million due to slightly lower electricity and steam production.

"Despite facing several challenges at the beginning of 2024, we have managed to maintain a strong financial balance sheet, with a stable net debt to equity ratio of 0.73 times. This reflects management's commitment to maintaining a strong capital structure and readiness to support future expansion plans," explained Agus Pangestu.

The company's subsidiary, Chandra Asri Pacific, has made significant progress in the development plan of the world-scale chlor-alkali and ethylene dichloride (CA-EDC) plant by signing a three-year salt purchase contract with an option to extend for another three years with BCI Minerals Ltd.

"Strategic downstream initiatives and diversification align with Barito Pacific's comprehensive decision to diversify its portfolio. We anticipate that this diversified resilience profile will further develop and strengthen in the years to come," he said.

In the energy sector, BRPT has reinforced its position as a leading domestic player and the most diversified energy entity, with extensive capacity in various sources. The company's diversified energy portfolio, comprising geothermal, wind, and USC coal-fired power plant assets, has a roadmap for capacity expansion.

"We believe that this strategic position prepares us to drive long-term growth, in line with the government's transition program towards renewable energy," he concluded.