JAKARTA (Rambu Energy) – PT AKR Corporindo, a basic chemical and fuel distributor company, said it is upbeat on subsidized fuel distribution business in this nation of 240 million people. The company believes the rising volume of subsidized fuel distribution will support the company’s sustainable growth and deepens its penetration to consumer market.
“With an increase subsidized fuel distribution in 2014, it is expected that the company will grow in a sustainable way through penetration to retail market segment,” the company said in a presentation material submitted to the Indonesian Stock Exchange.
In 2014, the company secured quota from the downstream oil and gas regulatory body, BPH Migas, to distribute 640,000 kiloliters of subsidized fuel, up from 268,000 kiloliters in 2013.
The subsidized fuel through its retail fuel stations, owned and managed by the company or jointly owned with other third parties.
As of today, AKR has built 131 fuel stations (SPBU) across the country. Of these, 54 fuel stations are located on Java Island, 41 in Sumatra, 33 in Kalimantan, one in Sulawesi and two in Bali.
In the period of 2009-2013, the company has posted compound annual revenue growth rate (CAGR) of 31 percent and CAGR of 22 percent for net profit, partly supported by subsidized fuel distribution.
In 2013, the company posted Rp17.67 trillion revenues from subsidized fuel distribution, compared to Rp17.3 trillion in previous year. In the first nine months to September this year, the company posted revenues of Rp13.54 trillion from fuel distribution.
Total revenues in 2013, reached Rp22.34 trillion, up from Rp21.67 trillion in 2012. In the nine months to September, its revenues already reached Rp16.99 trillion. Net profit was Rp 648 billion in 2013, compared to Rp649 billion in 2012, while in nine months to September its net profit reached Rp 579 billion.
Apart from distributing subsidized fuel and fuel products (high speed diesel, fuel oil, industrial diesel oil and moor gasoline), the company also distributed basic chemicals such as caustic soda, hydrochloric acid, PVC resin, soda ash, sulfuric acid, methanol, hydrogen peroxide and sodium hypoch(*)