Tri Polyta posts Rp 10.6b net loss in 4th quarter
Tri Polyta posts Rp 10.6b net loss in 4th quarter
JAKARTA (JP): PT Tri Polyta Indonesia announced yesterday a
net loss of Rp 10.6 billion (about US$4.4 million) for the fourth
quarter of last year after a net income of Rp 8.3 billion in the
same period of 1995.
The company said the net loss, on U.S. Generally Accepted
Accounting Principles (GAAP) basis, was Rp 413 per American
Depository Share (ADS). This compared to net income of Rp 322 per
ADS during the fourth quarter of 1995.
Tri Polyta, which is listed on Jakarta and New York stock
exchanges, attributed the loss to a narrow Delta P caused by
declining polypropylene prices in Asia and high spot propylene
prices because of an acute regional shortage.
"In addition, rising naphta prices added to increased
propylene costs," the company said.
Earnings before interest, tax, depreciation and amortization
was Rp 16.4 billion for the fourth quarter of 1996 compared to Rp
25.1 billion for the same quarter a year ago.
Tri Polyta's average Delta P was $264 in the fourth quarter of
1996 compared to the average spread of $451 in the same quarter a
year ago.
In Asia a significant polypropylene capacity expansion entered
commercial production in the fourth quarter of 1996 and capped
the upside of for polypropylene prices.
Tri Polyta said this expansion came on line before planned
feedstock capacity expansions caused demand to exceed supply
causing an acute propylene shortage in Asia.
For the fourth quarter of 1996 the company reported net sales
of Rp 178.5 billion, a 45 percent rise on the Rp 123.5 billion
for the same quarter of the year before.
"This increase reflects sales volume growth driven by the
company's strategy of pushing sales in order to benefit from
lower cash conversion costs on full production," the company
said.
On an Indonesian GAAP basis, the net loss for the fourth
quarter of 1994 totaled Rp 11.5 billion or Rp 45 a share,
compared to net income of Rp 6.2 billion or Rp 24 a share in the
same period of 1995.
Net sales for the year ended Dec. 31, 1996 rose 22.7 percent
to Rp 720.4 billion from Rp 587.2 billion in 1995. Total sales
volume increased 51.5 percent to 353,455 tons compared to the
same period in 1995.
Total production for the year was 335,030 tons, a 34.7 percent
rise from the 248,691 tons in 1995. This production gave the
company an annualized 1996 average cash conversion cost of $143 a
ton.
Tri Polyta's income before tax and minority interest on the
Indonesian GAAP basis during 1996 was Rp 33.5 billion compared to
Rp 73.2 billion in 1995.
This increase reflected higher interest costs of Rp 27.3
billion, mainly because of increased borrowing for its expansion,
the company said.
Net income on an Indonesian GAAP basis was Rp 26 billion or Rp
101 a share, compared to net income of Rp 58.5 billion or Rp 227
a share in the same period of 1995.
Net income under the U.S. GAAP basis was Rp 34.9 billion or Rp
1,354 per ADS, compared to net income of Rp 65 billion or Rp
2,524 per ADS in the same period of 1995. (hen)