April 11, 2019

BIPI Records Positive Performance for 2018

PT Astrindo Nusantara Infrastruktur Tbk. (“Company”), an investment company focused on mining and energy infrastructure, successfully recorded a satisfactory performance at the end of 2018, reflected in the Consolidated Financial Statements for the Years Ended December 31, 2018 and 2017.

In terms of performance, the Company’s revenue increased from USD3.27 million in 2017 to USD27.16 million in 2018 as the Subsidiary’s Financial Statements, PT Mitratama Perkasa (“MP”) began to be consolidated, which were previously only recorded as investments in Joint Ventures. Meanwhile, the cost of revenue can also be reduced from USD8.84 million in 2017 to USD5.22 million in 2018 in line with the divestment of subsidiaries engaged in the oil and gas segment at the end of 2017 as a strategic step for the Company to focus more on integrated energy infrastructure. Data taken from the end of 2018, reveals the Company recorded a very significant Gross Profit increase of USD21.94 million, in comparison to the previous Gross Loss of USD5.58 million.

The Director of the Company, Michael Wong said, “We are quite satisfied with the results achieved in 2018 which reflect positive growth performance along with the increase in income and the decrease in the Company’s cost of revenue”.

Although the Company still recorded an increase in financial expenses from USD23.36 million in 2017 to USD92.22 million in 2018, which resulted in a decrease in Net Profit from USD65.61 million in 2017 to USD21.89 million in 2018. However, the Company managed to maintain a positive Net Profit.

The increase in financial expenses in 2018 compared to 2017, occurred due to the impact of a series of strategic transactions conducted by the Company to obtain refinancing and to settle maturing loan obligations of subsidiaries. At the end of 2018, the Company managed to obtain new loans totalling $235 million from several foreign creditors.

This achievement is a reflection of the high-level of trust that remains in our ‘external parties’ of the Company. In the future, the Company remains optimistic that it can increase value for its stakeholders.

The performance results reflected in the Financial Report are inseparable from the results achieved through the Company’s operational activities. For 2018, the amount of coal handled that has been produced by the Company through its subsidiaries, PT Mitratama Perkasa, and joint venture entities, PT Nusa Tambang Pratama, totals 72.43 million tons. In comparison to last year, where there was a decline of 6%. However, this decline did not have a significant impact on the Company’s operational performance in its coal handling business partners, as a whole. The number of coal handling is expected to continue to increase and reach 86 million tons by the end of this year.

In addition, this year the Company is targeting additional handling of coal in the South Sumatra region, totalling 1.5 million tons, through its subsidiary, PT Putra Hulu Lematang. This, along with the completion of the port construction and supporting facilities at the end of last year.

The President Director of the Company, Ray Anthony Gerungan added, “The Company has prepared strategic steps to improve financial and operational performance this year, by continuing to increase our competitiveness and to open new opportunities for Business Development within the scope of integrated energy infrastructure.”

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