Lower rubber prices affect BSP's profit

JAKARTA (JP): Publicly listed PT Bakrie Sumatra Plantations (BSP) announced yesterday that its after-tax profit dropped by about 10 percent in the first three quarters of this year to Rp 29.99 billion (US$9.08 million) from Rp 33.69 billion in the same period last year.

The company's president, Hari Witono, said the drop in net income was due to the fall in rubber prices in the international market.

Hari said the company's rubber production increased to 16,889 tons the first three quarters of this year from 14,846 tons in the same period last year. Total sales volume of rubber increased to 16,388 tons from 14,629 tons in the same period last year.

"The increase in production was not followed by a rise in sales revenue due to the drop in rubber prices," he said.

Bakrie Sumatra produces various rubber products, including solid latex, crumb rubber and cream latex.

Hari said the company's unaudited gross profit slightly dropped to Rp 34.12 billion as of September this year from Rp 37.76 billion in the same period last year.

He declined to give further details of this year's target and for next year.

The company also announced its expansion into West Kalimantan through its subsidiary PT Patriot Andalas to develop about 10,000 hectares of oil palm estates.

BSP's business development director Idris Pabottingi said the company planned to develop at least 1,000 hectares of oil palm estates by the end of 1997.

"As of September, we've planted about 412 hectares, and we plan to open up 645 more hectares this month," he said, adding that planting was expected to be completed in three years.

Hari said the company's U.S. dollar denominated loans totaled $79 million as of September, carrying an average interest rate of 2 percent above the Singapore Inter Bank Offered Rates (Sibor).

He added that offshore debts did not affect the company's financial performance because the company sold 100 percent its products in U.S. dollars.

BSP, which received an ISO 9002 certificate last year, exports 90 percent of its products to the United States and European countries.

BSP, which also operates a rubber processing plant, was founded in 1991 as a joint venture between U.S. and Dutch companies under the name NV Hollandsch Amerikaanse Plantage Maatschapij.

After changing the name and ownership several times, the company became a subsidiary of PT Bakrie Nusantara Corporation, a parent company within the Bakrie Group.

BSP's rubber plantations cover 22,536 hectares in Kisaran. The company also operates about 4,000 hectares of oil palm estates in Asahan, Jambi and Pasaman in West Sumatra.

In 1992, the company took over 100 percent of shares in Lewis and Peat Rubber Inc (USA), and Lewis and Peat Private Ltd (Singapore), and 99 percent of shares in Lewis and Peat Rubber Ltd (London).

The company also has a 95 percent stake in PT Bakrie Pasaman Plantations, which processes palm kernel, and a 100 percent stake in PT Agrowiyana, which operates in general trade, agriculture and plantations.

BSP is currently owned by PT Bakrie and Brothers (52.5 percent), public shareholders (28.2 percent), PT Daya Sarana Pratama (8.9 percent), PT Bimantara Citra (7 percent), Habibulloh Nasution (2 percent) and Soedjai Kartasasmita (1.4 percent). (08)