Massive forex losses slash Garuda profit

JAKARTA (JP): National flagship carrier Garuda Indonesia's net profit dropped by 90 percent in 2000 to Rp 53.24 billion (about US$4.75 million) due to the sharp increase in the airline company's foreign exchange losses.

The company reported on Monday that operating revenues rose 22 percent to Rp 9.28 trillion from Rp 7.54 trillion, while operating expenses increased 15 percent to Rp 8.41 trillion from Rp 7.31 trillion.

These resulted in net operating revenues of Rp 873.42 billion last year, an increase of 75 percent from Rp 231.83 billion in 1999.

The company's foreign exchange losses, which reached Rp 598.41 billion in 2000 due to the weakening of the rupiah against the U.S. dollar, caused a major blow to the airline's 2000 financial performance.

In 1999, when the rupiah was relatively more stable, the airline recorded a foreign exchange gain of Rp 114.34 billion.

The 2001 financial result received an unqualified opinion from the Development and Finance Audit Agency (BPKP), which audits state-owned companies.

In the 2000 financial report, Garuda's long term liabilities skyrocketed to Rp 3.32 trillion from only Rp 25.97 billion in 1999, far exceeding its long term receivables which slightly fell to Rp 123.849 billion in 2000, from Rp 133.018 billion the previous year.

Garuda's current liabilities also surged to Rp 8.130 trillion last year from Rp 7.643 trillion the year before, larger than its current assets of Rp 4.517 trillion last year which slightly increased from Rp 3.572 trillion the year before.

But, Garuda's total assets increased to Rp 10.012 trillion last year from Rp 6.246 trillion the previous year, thanks to a significant increase in its leased assets and other assets.

The company's leased assets jumped to Rp 2.520 trillion last year, compared with only Rp 670.141 billion the year before, while its other assets rocketed to Rp 1.155 trillion last year, larger than Rp 714.394 billion in 1999.

Garuda currently operates 42 aircraft, comprising 24 Boeing 737s, seven Boeing 747s, six A-330s and five DC-10s after it decided to stop operation of its five F-28s in a move to modernize its fleet. (03)