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Wed, 13 Sep 2000

JP/APRIL books 21% rise in net profit

APRIL books 21% rise in net profit

JAKARTA (JP): Asia Pacific Resources International Holdings Ltd. (APRIL), which owns pulp and paper mills in Riau province, has reported a 21 percent increase in net profit to US$26.2 million in the second quarter, from $21.7 million in the first quarter.

APRIL, which is listed in the New York Stock Exchange, said in a statement received here on Tuesday that its net sales increased to $159.4 million in the second quarter from $141.3 million in the first.

"Our operating margin strengthened 3.3 percentage points from the first quarter to 38.4 percent in the second quarter," the statement added.

The group said the recent sale of its 51 percent stake in the Changshu paper mill in China to UPM-Kymmene of Finland enabled it to increase its equity contribution by $100 million in the financing of the first phase of Riaupulp's Line 2 production facility.

"This transaction allows APRIL to focus on its pulp expansion and allocate capital to expedite the completion of the first phase of Riaupulp's Line 2 pulp project early next year, which will have an annual capacity of 450,000 metric tons," it added.

The group added that the sale did not end its operations in the huge Chinese market because the transaction was followed by a pulp supply agreement for the supply of 200,000 tons of bleached hardwood kraft pulp from Riaupulp for 6.5 years to the Changsu mill.

"Moreover, APRIL's strategic position in China will be maintained via its ownership of the Suzhou converting plant," the group added.

It added that its subsidiaries -- Riaupulp, Riaupaper and Riau Prima Energi -- had signed debt restructuring agreements with major lenders for $1.27 billion out of their combined debts of $1.3 billion.

"An agreement with the remaining creditors, holding $30 million, is expected shortly," APRIL said.

Riaupulp (PT Riau Andalan Pulp & Paper) at present operates an 850,000-ton bleached hardwood kraft pulp mill and Riaupaper (PT Riau Andalan Kertas) operates a 350,000-ton uncoated wood-free paper mill, both in Riau.