Sumalindo books Rp 163.4b profit

The Jakarta Post, Jakarta

Publicly listed timber company PT Sumalindo Lestari Jaya returned into the black last year after rescheduling its debts, posting a Rp 163.4 billion (US$17.22 million) net profit for 2004.

Sumalindo said last week that its consolidated net profit rose to Rp 349 per share in 2004 from a loss of Rp 333 per share, equal to a Rp 155.9 billion loss for all shares, in 2003.

Net revenues went up 12 percent to Rp 773.6 billion last year from Rp 689.6 billion recorded a year earlier, it said.

The Samarinda-based firm attributed the success to its product strategy, which focused on high-value plywood sourced from a commercial timber plantation.

"The company could then reduce its dependency on logs from natural forests," the firm said.

Sumalindo also rescheduled $103 million of its debts to several creditors by converting some $35 million to capital and managed to pay back all its debts to the government amounting to $3.7 million and Rp 11.6 billion.

Sumalindo's main business is an integrated wood-based industry in East Kalimantan, Papua, Riau and Jambi. Most of its products are exported.

The majority shareholder of the firm is PT Sumber Graha Sejahtera, with more than 75 percent stake. PT Barito Pacific Timber owns another 9.53 percent while the rest is owned by the public.