Jakarta. Petrochemical giant Chandra Asri Pacific or TPIA’s decision to acquire Aster is starting to bear fruit.

Chandra Asri had acquired Shell Energy and Chemicals Park Singapore (SECP) asset–also known as Aster– last year. The move had transformed Chandra Asri’s business profile from a petrochemical company heavily dependent on industrial cycles to an integrated business group in the energy, chemical, and infrastructure sectors.

Verdhana Sekuritas analyst Nizam Syafik stated that over the past three years, Chandra Asri has transformed itself from a single petrochemical asset worth approximately $1.8 billion into an integrated business platform with potential revenues from $7 billion to $10 billion. The company also overcame the negative margin pressure in the 2022-2024 period.

Nizam attributed this turnaround to Aster acquisition. This allowed Chandra Asri to acquire a 237,000 barrels-per-day oil refinery and a 1.1 million-ton-per-year ethylene cracker, which form the foundation of the company's energy business.

"Aster effectively diversified Chandra Asri's revenue sources, which previously relied heavily on petrochemicals. Energy has now become the largest contributor to the company's revenue," Nizam stated in his research.

Verdhana data shows that the energy segment contributed approximately 55% of Chandra Asri's total revenue in the first quarter of 2026, surpassing the chemical segment's contribution of 42% and infrastructure at around 3%.

Chandra Asri’s financial performance is on the rise. In the first quarter of 2026, Chandra Asri posted its highest-ever consolidated earnings before interest and taxes (EBIT) of $468 million, with net profit reaching $205 million. This performance was primarily driven by the energy segment, which generated EBIT of $556 million.

Chandra Asri had acquired Aster’s assets via CAPGC, a joint venture with Glencore, for approximately $255 million, significantly below the assets' book value of$933 million. 

Aster also expanded Chandra Asri's business value chain. The company previously completed the acquisition of the Esso fuel retail network, resulting in an integrated business from refining and petrochemicals to energy distribution and retail sales. This strategy allows the company to capture synergies throughout the supply chain and reduce dependence on a single revenue source.

Business diversification is also strengthened through the development of the Chlor-Alkali and Ethylene Dichloride (CA-EDC) project in Cilegon. The$800 million project, developed in collaboration with Danantara and the Indonesia Investment Authority (INA), is set to begin operations in 2027. The facility will have a production capacity of 400,000 tons of caustic soda and 500,000 tons of ethylene dichloride per year.

Nizam believes the CA-EDC project has the potential to become Chandra Asri's next growth engine. The caustic soda product will target domestic industrial needs, including the detergent, alumina, and nickel processing sectors, while the EDC will be exported to meet the global PVC industry's needs.

The infrastructure business, operated through Chandra Daya Investasi Tbk (CDIA), is also beginning to play a strategic role in the company's ecosystem. This business unit manages energy, industrial water, ports, storage, and logistics businesses that support both internal and third-party operations. The presence of the infrastructure business strengthens operational integration while creating a more stable source of income compared to the cyclical nature of the petrochemical business.

Verdhana sees Chandra Asri's current position as much stronger than it was a few years ago. The company's total assets surged to$12.5 billion in the first quarter of 2026 from approximately$5.7 billion in 2024. Equity also rose to$4.86 billion, while quarterly net profit reached US$205 million. The company also recorded an EBIT margin of 19.5% and an interest coverage ratio of 6.89 times, reflecting its improved ability to meet its financial obligations.

Verdhana expects this positive trend to continue, driven by strong refinery margins in Singapore. Geopolitical tensions in the Middle East and global supply disruptions have led to crack spreads expected to remain above US$10 per barrel, significantly higher than historical pre-conflict levels of below US$5 per barrel. This is expected to accelerate Aster's return on investment while improving the company's debt structure.

TPIA's stock has also increased in the capital market. The company's free float now stands at 25.7%, a significant increase from around 10% previously, after SCG Chemicals adjusted its shareholding as part of its deleveraging strategy. However, Verdhana emphasized that this change does not impact the company's strategic direction or control, as the three main shareholders—Barito Pacific, SCG Chemicals, and Thai Oil—still control approximately 74.3% of TPIA's shares.

Verdhana believes Chandra Asri is now in a stronger position to weather the global petrochemical industry cycle, which remains overshadowed by excess capacity from China.