Lower rubber prices affect BSP's profit<\/p>\n
JAKARTA (JP): Publicly listed PT Bakrie Sumatra Plantations
\n(BSP) announced yesterday that its after-tax profit dropped by
\nabout 10 percent in the first three quarters of this year to Rp
\n29.99 billion (US$9.08 million) from Rp 33.69 billion in the same
\nperiod last year.<\/p>\n
The company's president, Hari Witono, said the drop in net
\nincome was due to the fall in rubber prices in the international
\nmarket.<\/p>\n
Hari said the company's rubber production increased to 16,889
\ntons the first three quarters of this year from 14,846 tons in
\nthe same period last year. Total sales volume of rubber
\nincreased to 16,388 tons from 14,629 tons in the same period last
\nyear.<\/p>\n
\"The increase in production was not followed by a rise in
\nsales revenue due to the drop in rubber prices,\" he said.<\/p>\n
Bakrie Sumatra produces various rubber products, including
\nsolid latex, crumb rubber and cream latex.<\/p>\n
Hari said the company's unaudited gross profit slightly
\ndropped to Rp 34.12 billion as of September this year from Rp
\n37.76 billion in the same period last year.<\/p>\n
He declined to give further details of this year's target and
\nfor next year.<\/p>\n
The company also announced its expansion into West Kalimantan
\nthrough its subsidiary PT Patriot Andalas to develop about 10,000
\nhectares of oil palm estates.<\/p>\n
BSP's business development director Idris Pabottingi said the
\ncompany planned to develop at least 1,000 hectares of oil palm
\nestates by the end of 1997.<\/p>\n
\"As of September, we've planted about 412 hectares, and we
\nplan to open up 645 more hectares this month,\" he said, adding
\nthat planting was expected to be completed in three years.<\/p>\n
Hari said the company's U.S. dollar denominated loans totaled
\n$79 million as of September, carrying an average interest rate of
\n2 percent above the Singapore Inter Bank Offered Rates (Sibor).<\/p>\n
He added that offshore debts did not affect the company's
\nfinancial performance because the company sold 100 percent its
\nproducts in U.S. dollars.<\/p>\n
BSP, which received an ISO 9002 certificate last year, exports
\n90 percent of its products to the United States and European
\ncountries.<\/p>\n
BSP, which also operates a rubber processing plant, was
\nfounded in 1991 as a joint venture between U.S. and Dutch
\ncompanies under the name NV Hollandsch Amerikaanse Plantage
\nMaatschapij.<\/p>\n
After changing the name and ownership several times, the
\ncompany became a subsidiary of PT Bakrie Nusantara Corporation, a
\nparent company within the Bakrie Group.<\/p>\n
BSP's rubber plantations cover 22,536 hectares in Kisaran. The
\ncompany also operates about 4,000 hectares of oil palm estates in
\nAsahan, Jambi and Pasaman in West Sumatra.<\/p>\n
In 1992, the company took over 100 percent of shares in Lewis
\nand Peat Rubber Inc (USA), and Lewis and Peat Private Ltd
\n(Singapore), and 99 percent of shares in Lewis and Peat Rubber
\nLtd (London).<\/p>\n
The company also has a 95 percent stake in PT Bakrie Pasaman
\nPlantations, which processes palm kernel, and a 100 percent stake
\nin PT Agrowiyana, which operates in general trade, agriculture
\nand plantations.<\/p>\n
BSP is currently owned by PT Bakrie and Brothers (52.5
\npercent), public shareholders (28.2 percent), PT Daya Sarana
\nPratama (8.9 percent), PT Bimantara Citra (7 percent), Habibulloh
\nNasution (2 percent) and Soedjai Kartasasmita (1.4 percent). (08)<\/p>",
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