Chandra Asri net profit surged nearly 600 pct on falling COGS, higher revenues

JAKARTA (RAMBUNERGY.COM) – PT Chandra Asri Petrochemical Tbk, the country’s largest petrochemical company, recorded a significant increase of net profit in the January-September period, driven by higher revenues and lower cost of goods solds on the back of lower oil price, the raw material used to produce petrochemical products.

In the nine month to Sept. 30, 2016, Chandra Asri recorded comprehensive net profit of US$214.9 million, surged 594.46 percent from US$30.94 million.

Its revenues reached US$1.4 million, up from US$1.14 million in the same period last year, while cost of goods sold was at US$1.04 million, slightly up from US$1.02 million in the same period last year.

Gross profit was at US$359.43 million compared to US$120.51 million a year ago, while pre-tax profit was at US$293.86 million, up from US$39.15 million.

Industry players have said petrochemcial companies like Chandra Asri benefits from the falling oil price as it lowered their production costs, while output sales remained the same, therefore their profit margin improved significantly.

On the other hand, the got favorable treatment from the government in the form of fiscal incentives. (*)

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