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)