Tri Polyta posts Rp 24.9b net loss in first quarter

Tri Polyta posts Rp 24.9b net loss in first quarter

JAKARTA (JP): PT Tri Polyta Indonesia posted a net loss of Rp
24.9 billion (US$10.4 million) during the first quarter this
year, blaming it on the rising price of propylene, its raw
material.

The company said here yesterday that while the propylene price
continued to rise, the price of polypropylene, which was made
from propylene, was unchanged.

The net loss, using U.S. Generally Accepted Accounting
Principles (GAAP), was Rp 967 per American Depository Share
(ADS), up from Rp 916 for the first quarter, the company said.

The company said that earnings before interest, taxes,
depreciation and amortization were Rp 11.1 billion compared to Rp
48.5 billion in the same period last year.

During the first quarter, Tri Polyta reported net sales of Rp
145.7 billion, a 10.9 percent decrease on last year.

"The decrease reflects a lower sales volume on reduced
production as well as a narrower Delta P, which is the difference
between the price of polypropylene and the price of feedstock
propylene," the company said.

It said that in the first quarter, the average Delta P was
$242, down from an average $467 in the same quarter last year.
The average Southeast Asia Delta P was $226 this quarter, down
from $429 last year.

The company said that the potential impact on profitability
from a narrowing Delta P, management had decided to conserve cash
to ride out the short-term margin squeeze. As a result, Tri
Polyta would not pay a dividend on last year's earnings.

The company said it would conserve the financial strength of
the company by cutting exports, focusing on domestic sales and
examining the cost structure of the firm.

Tri Polyta posted a net loss of Rp 10.6 billion in the fourth
quarter last year. (bnt)