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[News] Barito Proposes Quasi-Reorganization Plan
Journalists: Alfian & Adi Teguh
PT Barito Pacific Tbk (BRPT) will push through with its quasi-reorganization plan. It will seek the shareholders’ approval at its General Meeting of Extraordinary Shareholders (Rapat Umum Pemegang Saham Luar Biasa) on November 17.
Agustino Sudjono, Senior Vice President of Investor Relations of Barito Pacific, said the filing of the documents for the move and the audited financial statements as of June 30 to the Capital Market Supervisory Agency (Badan Pengawas Pasar Modal) was completed on October 7.
Barito’s quasi-reorganization plan was initially planned for May 2011. However, the Capital Market Supervisory Agency requested Barito Pacific to postpone it until the company is able to submit the mid-annual financial statements, showing profit.
It will be conducted to cover the company’s deficit, which as of September 2011 has reached Rp 5.79 trillion (US$ 648.48 million). The deficit balance has been accumulating over the years.
When the company’s balance sheet shows a healthy figure, Barito will find it easier to obtain funding to expand the business. Once the deficit is eliminated, Barito can distribute dividends to shareholders. The company’s stock liquidity can also increase.
Sales of Investments
By the third quarter of 2011, Barito Pacific booked a net profit increase of 963.3 percent to Rp 235.1 billion over the same period in 2010, in which the company experienced a net loss of Rp 27.2 billion.
With the investment sales, Barito’s total miscellaneous income rose 150 percent to Rp 335.95 billion.
This caused the company’s pretax profit to rise 360 percent to Rp 279.8 billion as of September 2011, compared to same period last year.
The company’s petrochemical business unit, PT Chandra Asri Petrochemical Tbk (TPIA), contributed 99.4 percent of Barito’s total revenue. The rest was contributed by its forestry, plantation and property business units.
Based on the IFT Research Department's assessment, even though Barito’s revenue increased 23 percent by the third quarter, the company’s production costs also increased significantly. This resulted in a gross margin of five percent, from the previous six percent in the same period last year.
Around 99.18 percent of Barito’s revenue is supported by its petrochemicals business segment. Demand in the petrochemical industry is increasing, but the cost of production, particularly raw material costs, increased significantly due to the rise in the world crude oil price. Naphtha, the crude oil derivative product, is the raw material for petrochemical products.
On Monday’s trade closing, Barito’s share price edged up Rp 20 or 2.5 percent to Rp 820, compared to the previous trade closing.
Source: Indonesia Finance Today