PT Samator Indo Gas (AGII) has booked a profit decrease of Rp29.09 billion (US$1.8 milllion) for the period of January to September 2024, as published in the company’s report on the Indonesia Stock Exchange (IDX) on Monday, September 30, 2024.
The leading gas producer in Indonesia recorded a profit of Rp85.8 billion, down from Rp114.8 billion during the same period last year.
Despite this profit decline, the company reported a gross profit of Rp955.1 billion, reflecting a modest growth of 1.9 percent compared to Rp937.1 billion in the previous year. The drop in profit was attributed to increased cost of sales and a decline in the consumer and retail sectors.
AGII’s President Director, Rachmat Harsono, noted that reduced consumer purchasing power over the past few months contributed to this downturn.
On a brighter note, Samator Indo Gas experienced a sales increase, reaching Rp2.13 trillion, a rise of 2.8 percent compared to Rp2.06 trillion in the same period last year. The main growth drivers were the healthcare and infrastructure sectors, which benefitted from rising construction activities.
Rachmat emphasized the company’s commitment to optimizing performance and meeting the national industrial gas needs through continuous innovation and development.
This includes the recent launch of its 56th plant in Batang, equipped with advanced technology and a production capacity of 7,000 Liquid Oxygen (LOX), 7,000 Liquid Nitrogen (LIN), and 280 Liquid Argon (LAR). Additionally, in October, the company began operations at its 57th facility in Batam, a hydrogen plant expected to be Indonesia’s first green hydrogen facility using electrolysis technology.
The financial benefits from these new plants are anticipated to be reflected in the 2024 financial statements. Rachmat remains optimistic about maintaining positive revenue growth while supporting the national industry’s transition to more sustainable energy sources.
Looking ahead, Samator Indo Gas continues to pursue expansion, with a 58th plant for acetylene production currently under construction in Sofifi, expected to commence operations by the end of 2024. The company is also planning to add new filling stations.
As part of its growth strategy, AGII aims to balance production expansion with cost-saving initiatives to enhance overall financial performance and create greater value for stakeholders.
The healthcare and infrastructure sectors are projected to drive sales growth further in 2024, driven by the increasing demand resulting from the expansion of existing and new hospitals and a rise in industrial goods demand linked to economic growth and construction activity throughout Indonesia.
As of Monday, September 30, 2024, total assets rose to Rp7.98 trillion, a 3.5 percent increase from Rp7.71 trillion the previous year, primarily due to the growth of fixed assets from the company’s expansion activities. Total liabilities reached Rp4.20 trillion, up 7.9 percent from Rp3.89 trillion, driven by new syndicated loans obtained in December 2023, partially offset by the repayment of short-term bank loans.
The company remains focused on improving productivity through better asset utilization and enhancing profitability with various business and financial strategies.
