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Shares divestment in Darajat Geothermal, Agro Muko boosts Austindo’s 9-mth net profit

JAKARTA (RambuEnergy.com) – PT Austindo Nusantara Jaya Tbk, a plantation company, reported an increase in net profit in the nine months to September, boosted by both a rise in sales and stakes divestment in two affiliated companies.

In March 2017, the company sold its 10.87% ownership in PT Agro Muko for US$44.3 million and recognized a gain on the sale of this investment amounting to US$39.4 million.

Following the completion of the sale, the company retains a 5% ownership in PT Agro Muko.

In September 2017, the company also sold its entire 99.99% ownership in PT Darajat Geothermal Indonesia (DGI) to Star Energy Geothermal (Salak – Darajat) BV and PT Barito Pacific Tbk for US$30.1 million and its entire 5% ownership in PT Star Energy Geothermal Suoh Sekincau (SGSS) to PT Barito Pacific Tbk for US$325 thousand.

The Company recognized a gain on the sale of these investments amounting to US$22.5 million.
In the nine months to September, ANJ booked total comprehensive income of US$35.76 million, surged from US$10.25 million a year ago, while revenues reached US$109.01 million, up from US$90.98 million in the same period last year.

The company recorded a net income of US$39.9 million, as compared to US$6.4 million in 9M16. In addition, EBITDA also surged to US$79.1 million in 9M17 from US$23.8 million in 9M16.

The company said 94.2% of its total revenue or US$102.7 million was derived from the sales of CPO and palm kernel (PK), an increase from US$85.6 million or 94.1% of its total revenue in 9M16. The Company recorded a net income of USD 39.9 million, as compared to USD 6.4 million in 9M16.

In addition, EBITDA also surged to USD 79.1 million in 9M17 from USD 23.8 million in 9M16
Its renewable energy segment contributed US$4.6 million in 9M17, slightly lower than in 9M16 of US$4.7 million. Meanwhile, the company continues its strategy of exiting from the tobacco business and switching to higher value agricultural products, including edamame.

Its tobacco sales revenue rose to US$1.3 million from US$0.5 million in the same period last year which resulted in a significant reduction of the company’s tobacco inventories as the company ceased to purchase tobacco since 2015.

The company expects to have sell its entire tobacco inventory by the end of 2017.

The company’s cost of revenue increased by 33.7% to US$84.9 million, in line with the increases in FFB volume and the higher purchase price from external parties. The company recorded an operating income of US$62.5 million, an increase from US$10.7 million in 9M16, boosted significantly by the recognition of the gain from the sale of our investment in PT Agro Muko in March 2017 and the sale of our investments in DGI and SGSS in September 2017.

Its financial charges, which represent interest expenses on our borrowings increased to US$2.6 million in 9M17, from US$173 thousand in 9M16, in line with the commencement of the commercial operation of its West Kalimantan palm oil mill and our sago mill in West Papua.

As the mill is now in operation the interest expenses on the borrowings to finance the construction of these assets can no longer be capitalized. (*)

Edited by Roffie Kurniawan, email: roffie.kurniawan@gmail.com

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