Indorama's profits up 93 percent

Indorama's profits up 93 percent

JAKARTA (JP): The publicly-listed PT Indorama Synthetics posted a 93 percent increase in its net profits to Rp 120 billion (US$53.3 million) in 1995 based on an unaudited report, said a company executive.

"A sharp increase in the prices of polyester products on the international market boosted our exports by 164 percent to Rp 385 billion," Indorama's president, Vinod Laroya, announced yesterday.

Vinod also said that the company's total sales were up 77 percent to Rp 676 billion.

Indorama's financial manager, Arvind Parakh, said that the polyester market was very strong during the first half of last year due to increased demand.

Arvind said that the prices of polyester filament yarns fluctuated at a range of $1.90 to $4.00 per kg and polyester staple fiber at $1.90 to $2.50 per kg.

He said that prices of polyester chips and PET resin also rose to $1,900 per ton and $2,007 per ton respectively.

"However, the second half showed a strong reversal of demand and subsequent easing of polyester prices. And we expect the trend to continue this year," Vinod said.

Arvind said the prices of polyester filament yarns are now recorded at $2.00 per kg and polyester staple fiber between $1.40 to $1.50 per kg.

Prices of polyester chips and PET resin, according to Arvind, have also dropped to a range of $1,400 to $1,500 per ton and $1,400 per ton respectively, back to the 1994 levels.

Vinod said that during 1995, Indorama produced 25,633 tons of spun yarn, 68,832 tons of polyester and 11.9 million meters of polyester gray fabric.

The company also started commercial production of its PET resin plant in February. For the whole year, the total production reached 63,000 tons.

Arvind said that the company will start commercial production of its new 84,000-ton per annum polyester plant in June.

The plant, which is now under construction, will manufacture micro filament and other yarns.

"The operation of the new plant will raise our annual production capacity to 216,000 tons of polyester this year from 128,000 tons last year," he said.

Indorama's managing director, S.P. Lohia, projected that the company's total sales will increase to Rp 925 billion this year supported by the production expansion.

"We also expect to book Rp 131 billion in after-tax profits this year," Lohia added.(08)