Jakarta. Chandra Asri Group posted record earnings in the first quarter of 2026, underpinned by strong refinery margins, asset integration, and disciplined operations despite ongoing pressure in the petrochemical sector.

In a flash update released Monday, the company reported quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) of $421 million and net profit of $205 million, both the highest in its history.

The performance was supported by “outstanding refinery performance, vigorous and risk-optimised feedstock sourcing, and robust execution of the Group’s strategy to transform into a diversified regional industry leader,” the company said.

Chandra Asri also maintained liquidity of $3.8 billion, providing a buffer against market volatility while supporting capital expenditure and long-term growth.

The earnings uplift reflects the integration of Shell Singapore refining assets and ExxonMobil Singapore retail operations completed over the past year, which strengthened the Group’s earnings base and scale.

Refinery operations emerged as a key driver during the quarter, as the company capitalised on elevated margins amid supply dislocations in the Middle East. Optimised crude selection and product placement enabled higher throughput and improved profitability.

Operational flexibility also played a role, with diversified feedstock sourcing allowing the Group to maintain high utilisation rates and stable output.

In contrast, the petrochemical segment continued to face headwinds from regional oversupply and weak downstream demand. However, the company said it was able to maintain stable operations through cost discipline and integrated optimisation.

Chandra Asri also reported continued progress in realising synergies from its acquisition strategy, including Shell, CPChem, and Esso assets in Singapore, with improvements seen across procurement, logistics, and commercial operations.

On the balance sheet, the Group maintained a “rock-solid financial position,” supported by strong operating cash flow and prudent working capital management.

Expanding Downstream and Sustainability Push

Beyond earnings, the company is advancing its long-term industrial strategy. Around $1 billion in capital expenditure has been committed to develop a caustic soda and ethylene dichloride (CA-EDC) facility in Cilegon, which is expected to start operations by 2027.

Construction of the plant has reached 50%, marking a key milestone in efforts to strengthen domestic supply of basic chemicals and reduce reliance on imports.

Separately, Chandra Asri, along with Danantara Indonesia and the Indonesia Investment Authority (INA), has signed a Conditional Share Subscription Agreement for the project, valued at approximately $800 million.

The Group is also expanding its infrastructure footprint through Chandra Daya Investasi (CDIA), focusing on logistics, storage, and utilities to support integrated operations.

On the operational side, Chandra Asri is carrying out scheduled Turnaround Maintenance (TAM) at its petrochemical complex in Cilegon starting January 2026.

“The execution of this maintenance also ensures that our petrochemical plant remains in optimal condition to support the Group’s operational continuity and supply stability for customers,” the company said.

In sustainability, the Group improved its CDP 2025 rating, securing an “A-” score for water security and maintaining a “B” for climate change, reflecting efforts in water efficiency and climate risk management.

Its community-focused Indonesia Asri program has engaged more than 3,300 participants since 2023 to promote circular economy practices, including waste sorting and environmental education initiatives.

Meanwhile, its subsidiary Aster Chemical & Energy Pte. Ltd. won the “Best Sustainability-Linked Loan” award at The Asset Triple A Sustainable Finance Awards 2026 for its $1 billion financing facility tied to environmental targets.

Chandra Asri also recently secured multiple accolades at the FinanceAsia Awards in Hong Kong, including Best M&A and Best CFO, highlighting investor confidence in its financial strategy and regional expansion.