ESSA SEES GLOBAL AMMONIA PRICE RISING DUE TO TIGHT SUPPLIES
Ammonia has the potential to become the future of Low-Carbon Energy Alternatives
Jakarta, 22nd March 2021 – PT Surya Esa Perkasa Tbk (“ESSA”), a listed company engaged in the Energy and Chemicals sector through its LPG (liquefied petroleum gas) refining and Ammonia production, sees global ammonia price rising due to tight supplies. ESSA also sees significant potential upside to developing Blue Ammonia at its ammonia facility as a future low-carbon energy alternative.
Ammonia is widely used as a raw material for the fertilizers manufacturing, plastics, and chemicals around the world. However, current demand forecasts of Ammonia do not take into account the rapid recognition of Ammonia’s role as a fuel of the future due its high hydrogen content, zero CO2 emissions during combustion, and proven delivery logistics.
President Director & Chief Executive Officer of ESSA, Vinod Laroya revealed, “Even though the price of Ammonia decreased significantly as a result of the Covid-19 induced slowdown in 2020, we believe the ammonia market remains relatively resilient to the pandemic. This is indicated by the sharp rebound in Ammonia prices from January 2021, largely driven by supply constraints and the beginning stages of demand recovery.”
ESSA’s subsidiary, PT Panca Amara Utama (“PAU”), located in Luwuk, Banggai, Central Sulawesi, is currently the first Ammonia plant in the world to employ the latest and most energy efficient technology, KBR’s Reforming Exchanger System (KRES) and Purifier Technology. The Company looks to leverage its strong operation base to build next generation products, particularly Blue Ammonia.
“On March 18, 2021, ESSA through PAU, has signed an MoU on Carbon Capture, Utilization & Storage (CCUS) together with Japan Oil, Gas and Metals National Corporation (“JOGMEC”), Mitsubishi Corporation (“MC”), and Institut Teknologi Bandung (“ITB”) to develop low-carbon Ammonia production, also known as Blue Ammonia in Indonesia. This asserts our commitment to creating a sustainable future while expanding ammonia’s current market reach,” he continued.
Meanwhile, in terms of financial performance, based on audited Consolidated Financial Statements as of 31 December 2020, ESSA managed to book revenue of USD 175.5 million in 2020, lower by 21% compared to USD 221.9 million in 2019. ESSA recorded a net loss of USD 33.6 million in 2020.
Despite a weakening of prices and reduction of production in 2020 due to Covid-19 and related difficulties, ESSA managed to maintain its operational performance in 2020 amid unfavorable global conditions by recording LPG production of 61,448 MT (-17.9% from 74,871 MT in 2019), Condensate production of 139,961 barrels (-15.1% from 164,948 barrels in 2019), and Ammonia production of 659,734 MT (-13.9% from 766,988 MT in 2019). All this while, the Company continued to employ – whilst providing the highest quality healthcare and safety standards to – all its workers.
“Going forward, ESSA shall continue to improve its performance in line with the recovery of prices and demand in the global market. Its strong production track record, employee culture and management team have weathered a difficult 2020, and are well prepared to create growth in the coming period,” concluded Vinod.
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Overview of PT Surya Esa Perkasa Tbk
PT Surya Esa Perkasa Tbk (“ESSA”) is a listed company engaged in Energy and Chemicals sector with a business portfolio in the field of LPG (Liquefied Petroleum Gas) refining and Ammonia production. Established in 2006, ESSA has been listed on the Indonesia Stock Exchange (IDX) since 2012. Through its subsidiary, PT Panca Amara Utama, ESSA is one of the largest Ammonia producers in Indonesia and represents the first application worldwide of the latest KBR Reforming Exchanger System and Purifier Technology.
With increasing emphasis on global sustainability, Blue Ammonia is emerging as a low carbon fuel alternative. In March 2021, ESSA (through PAU) signed a Memorandum of Understanding (MoU) on Carbon Capture, Utilization and Storage (CCUS) for Blue Ammonia Production in Indonesia with Japan Oil, Gas and Metals National Corporation (“JOGMEC”), Mitsubishi Corporation (“MC”), and Institut Teknologi Bandung (“ITB”). With its Blue Ammonia commitment, ESSA paves the way for Indonesia to play a leading role in the future with low carbon fuels.
For further information, please contact:
Lufy Setia
Corporate Secretary
PT Surya Esa Perkasa Tbk.
Phone: +62 21 2988 5600
Email: lufy.setia@sep.co.id
M. Aditya
Media Relations
Mobile: +62 81295486465
Email: investor.relations@sep.co.id
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