ESSA PERFORMANCE REFLECTS ON-GOING RECOVERY IN THE FIRST QUARTER OF 2021
Q1 2021 Earnings Increased Due to Rising Global Ammonia Prices
Jakarta, 22 April 2021 – PT Surya Esa Perkasa Tbk (“ESSA”) a publicly listed company operating in the Energy and Chemicals sector through LPG refining and Ammonia production, booked a significantly increased financial performance for Q1 2021.
Based on the unaudited Consolidated Interim Financial Statements per 31 March 2021, ESSA succeeded in recording earnings of USD 68.5 million in Quarter I-2021, an increase of 8.86% compared to Quarter I-2020 with USD 62.9 million.
Earnings from Ammonia increased by 11.8% in Quarter I-2021 compared to the same period in the previous year. ESSA’s earnings increase is mainly contributed by the Ammonia segment with sales of 86% followed by the LPG segment of 14%. Meanwhile, from the operations side ESSA managed to decrease its Selling expenses by 18% and General and Administrative expenses by 17% compared to the same period in the previous year. This enabled the Company to have better operational margin which led to increase in the Company’s net profit to USD 9.5 million in Quarter I-2021, compared to USD 0.3 million during Quarter I-2020.
ESSA’s President Director, Vinod Laroya, stated, “ESSA’s earnings and net profit increased along with the sharp recovery of Ammonia prices since January 2021. The price rise was triggered by supply challenges and because the sector is entering a demand recovery phase. Moving forward, ESSA will continue to increase its performance along with the recovery of global market price and demand.”
Ammonia is used as a raw material of fertilizer, plastic, and chemicals around the world. However, the current demand for Ammonia has not considered Ammonia’s role as an alternate fuel in the future with its high hydrogen content, zero CO2 emissions when combusted, and reliable logistic shipment.
Along with Ammonia’s global demand ascent, ESSA has identified additional sources for the development of ammonia demand through Blue Ammonia which is currently showing significant prospects. For this reason, in March 2021 the Company partnered with Japan Oil, Gas and Metals National Corporation (“JOGMEC”), Mitsubishi Corporation (“MC”), Institut Teknologi Bandung (“ITB”) to sign a Memorandum of Understanding (MoU) on Carbon Capture, Utilization & Storage (CCUS) to produce Blue Ammonia in Indonesia at the Ammonia Factory in Banggai, Central Sulawesi.
“Furthermore, in March 2021 through its subsidiary – PT Panca Amara Utama (“PAU”) – ESSA has successfully refinanced its USD 495 million long-term loan. This enables PAU to have a much simplified and leaner capital structure. We believe the new financing perfectly positions the Company to create strong roots in these uncertain times and to always contribute as One for Indonesia,” Vinod concluded.
PT Surya Esa Perkasa Tbk (“ESSA”) is a publicly listed company in operating in the Energy and Chemicals sector with a business portfolio in LPG (Liquefied Petroleum Gas) refining and Ammonia production. Established in 2006, ESSA has been listed in the Indonesia Stock Exchange since 2012. Through its subsidiary, PT Panca Amara Utama (“PAU”), ESSA became one of the biggest producers of Ammonia in Indonesia which became the first company globally to utilize the newest technology, which is: KBR Reforming Exchanger System and Purifier Technology.
In line with the increasing concerns for global sustainability, Blue Ammonia recently surfaced as an alternative for low carbon fuel. In March 2021, ESSA (through PAU) signed a Memorandum of Understanding (MoU) on Carbon Capture, Utilization and Storage (CCUS) to produce Blue Ammonia in Indonesia in partnership with Japan Oil, Gas and Metals National Corporation (“JOGMEC”), Mitsubishi Corporation (“MC”), and Institut Teknologi Bandung (“ITB”). Through the Blue Ammonia commitment, ESSA opens the path for Indonesia to be a pioneer at producing fuel for the future.
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