Jakarta. Integrated and diversified petrochemical and energy company firm Barito Pacific (BRPT) recently announced it had booked a consolidated revenue of $619 million (approximately Rp 10.02 trillion) in the first quarter of 2024, down by 4.9 percent compared to the same period the previous year.

BRPT’s profit-after-tax also went down 74.5 percent to $14 million compared to the first quarter of 2023 (yoy).

"Our results for the first quarter of 2024 show ongoing fluctuations in the global petrochemical sector, which are exacerbated by increasing geopolitical tensions, thereby weakening sentiment," Barito Pacific President Director Agus Pangestu was quoted as saying in a recent press statement.

Net income from the petrochemical business fell 4.3 percent yoy to $472 million in the first quarter of 2024, mainly due to disruptions in global supply demand, which led to lower sales volumes. Energy revenue also fell 5.8 percent yoy to $145 million in the first quarter of this year due to slightly lower electricity and steam production at the start of the year.

Consolidated cost of revenue amounted to $501 million or increased 0.6 percent yoy due to higher naphtha raw material costs to $682 per ton from the previous $651 per ton in line with changes in the price of Brent crude oil.

"We recorded a decline in consolidated EBITDA of 28.6 percent yoy to $135 million from US$189 million in the previous year. As a result, EBITDA margin shrank to 21.8 percent from 29.08 percent. This decrease is in line with the increasing volatility that occurred in the petrochemical segment, although this was partially offset by stability in the geothermal segment," he said.

According to Agus, the company recorded a decline in net profit after tax of 74.5 percent yoy to $14 million, in line with the spike in volatility in the global petrochemical segment. Meanwhile, the company's total assets at the end of the first quarter of 2024 hit $10,048 million.

“Despite starting 2024 with several challenges, we managed to maintain a strong balance sheet, with the net debt to equity ratio remaining stable at 0.73x. This reflects management's commitment to keeping our capital structure resilient and ready to support our future expansion plans," Agus said.

Agus said that Barito Pacific's business performance continues to show the results of the transformation of the company's business portfolio, in addition to the resilience of its capital structure in facing global volatility in the petrochemical sector. Chandra Asri has again achieved significant progress in his plans for a world-scale chlor-alkali and ethylene dichloride (CA-EDC) plant by signing a three-year salt purchase contract with an extension option for a further three years with BCI Minerals Ltd.

“The downstream and diversification strategic initiatives are in line with Barito Pacific's overall 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, Agus continued, BRPT has strengthened its position as a leading domestic player and the most diversified energy entity, with extensive capacity in various sources. 

“Our diversified energy portfolio, consisting of USC geothermal, wind, and coal-fired power assets, has a clear roadmap for capacity expansion. "We believe that this strategic position makes us ready to drive long-term growth in line with the government's transition program towards renewable energy," he said.