Jakarta. In the first half of 2024, the financial performance of PT Barito Pacific Tbk (BRPT) reflects continuous progress in both organic and inorganic growth, despite the challenges faced by the petrochemical industry during the first six months of the year.

Based on Barito Pacific's financial report (consolidated) for the period ending 30 June 2024 (unaudited), the company successfully recorded a profit for the period attributable to the owners of the parent entity of $34 million, a 13.3 percent increase compared to the net profit of $30 million in the first semester of 2023.

The double-digit net profit growth was mainly influenced by a 16.1 percent year-on-year decrease in the cost of revenue in the first semester of 2024, amounting to $914 million. This condition aligns with BRPT revenue in the first half of this year, which decreased by 15.6% year-on-year to $1.16 billion.

"Our 6M24 results reflect a combination of cautious optimism and ongoing challenges in the global petrochemical sector. Despite significant turmoil, we continue to demonstrate good resilience and proceed with our expansion plans. This is evident from the progress in organic growth and a series of acquisitions to support future growth," said BRPT President Director Agus Salim Pangestu.

Agus explained that the decline in BRPT's consolidated revenue in the first half of 2024, which was 15.6 percent, was more influenced by the volatility that occurred in the global petrochemical industry. Additionally, it was affected by the scheduled Turnaround Maintenance (TAM) at Barito Pacific's petrochemical complex and maintenance activities in one of the geothermal operation units.

“The scheduled TAM at our petrochemical complex is a routine activity to ensure facility reliability and comply with applicable regulations. Contribution from the recently acquired Sidrap I helped mitigate part of the revenue decline, as it achieved record-high production during this period since it first began operations," explained Agus.

According to him, the contribution from Sidrap I demonstrated the strategic value gained by the company from implementing a portfolio diversification strategy in the renewable energy sector (EBT). 

BRPT efforts to drive inorganic growth are carried out by applying a focused acquisition process and prioritizing strategic partnerships, thereby strengthening Barito Pacific market position and facilitating its transition to becoming a leading regional player.

Agus stated that the conditions experienced by BRPT during the first six months of 2024 impacted operational performance, as reflected in the consolidated EBITDA of $271 million, with an EBITDA margin of 23.4 percent. The net debt-to-equity ratio in the first semester of 2024 remained relatively stable at 0.73x, which also reflects the strong commitment to maintaining a healthy financial profile amid the company expansion plans.

"Despite market fluctuations, Barito Pacific continues to demonstrate solid resilience with a maintained liquidity profile, supporting the ongoing expansion and providing the capability to seize inorganic opportunities," said Agus.

As known, in May 2024, Chandra Asri Petrochemical (CAP) and Glencore Plc signed an agreement to acquire the entire ownership of Shell Singapore Pte Ltd in Shell Energy Chemicals Park Singapore (SECP). The transaction process is expected to be completed by the end of 2024 and is currently awaiting regulatory approval. This corporate action is believed to strengthen Chandra Asri's position and enhance its competitiveness in the regional market.

In the property segment, Agus continued, BRPT has initiated the early development plan to expand the industrial area in Subang, with a strategic location near Patimban Port. "This prime position will optimally place us to capitalize on emerging opportunities in the development of automotive manufacturing facilities and align with the government's plan to further boost foreign direct investment [FDI]," he explained.

Agus added that BRPT subsidiary, PT Barito Renewables Energy Tbk (BREN), will also increase its geothermal asset capacity through retrofit programs and the addition of new units. "BREN will develop greenfield geothermal assets in Hamiding and Suoh Sekincau, as well as advance Sidrap 2, which is expected to begin tendering in the second half of 2024," he said.