Barito not to pay dividend due to massive losses

Barito not to pay dividend due to massive losses

JAKARTA (JP): Publicly listed integrated timber company PT
Barito Pacific Timber (BPT) has decided not to pay a dividend for
the company's 1997 financial year due to sustaining significant
losses during the year.

Newly appointed company president Yohannes Hardian said
yesterday said the firm suffered a net loss of Rp 39.09 billion
(US$2.8 million) last year due to foreign exchange losses of Rp
25 billion and a Rp 110 billion rise in the cost of swap
contracts despite an increase in its operating profit to Rp
121.49 billion.

"The loss was mainly due to the sharp increase in the foreign
exchange losses," he said after the company's shareholders
meeting.

In 1996 the company booked a net profit of Rp 87.28 billion.

In 1997 the company recorded total sales of Rp 1.08 trillion,
an increase of 114.1 percent from Rp 951.31 billion in 1996.

Yohannes said the company's first quarter sales this year were
5 percent to 10 percent lower than the same period last year due
to the sluggish demand in the Asian market.

But he said that he was optimistic that sales for the second
quarter would improve.

"I'm sure that sales for the second quarter will reach at
least the same level as the same period last year due to the
economic recovery in several main markets such as Japan," he
said.

He declined to provide projections for 1998 but said that once
its on-going construction projects were completed, around August
next year, the company would no longer have dollar-based spending
commitments.

The company is currently constructing a multimillion dollar
pulp and paper plant in Sumatra, called Tanjung Enim Lestari Pulp
and Paper.

Yohannes said that the company had no plans to export logs
from its forest concessions despite the government's recent
decision to lift restrictions on log exports.

Barito's newly installed vice president, Susana Sutanto, said
the company was hit severely by crashing wood prices which are
half of last year's levels.

Susana said that the company's total consolidated debt reached
$363.5 million in December last year, of which $293.5 million is
short term, as well as Rp 400 billion in bonds maturing in 2002.

But she said that Barito would likely face no problem paying
the debt because more than 90 percent of the company's production
was exported.

Susana hinted Barito would not participate in the government-
sponsored debt restructuring plan. She said the company would
renegotiate the debts with its creditors bilaterally.

In addition to endorsing the company's no dividend policy, the
shareholders meeting also approved a major reshuffle which
replaced the majority of its directors and commissioners. The
company replaced president Joso A. Gotama with Yohannes Hardian,
previously a company director.

The company, however, retained timber tycoon Prajogo Pangestu
as its chief commissioner.

"It's just a normal replacement because the old directors had
completed their five-year terms. It is also aimed at refreshing
the company's management," he said.

Barito Pacific Timber, established in 1979, is 30.66 percent
owned by PT Barito Pacific Lumber Company, 23.81 percent by PT
Tunggal Setia Pratama, 15.22 percent by PT Taspen, 7.98 percent
by Prajogo Pangestu, 8.68 percent by Norbax Inc. and 13.65
percent by the public. (gis)