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)