AKR FY10 revenue outstrips Rp12 trio - Insider Stories

One of Indonesia's largest petroleum and chemical distributor PT AKR Corporindo Tbk (AKRA) is estimated to record Rp12 trillion revenue last year, or up 34.83% compared with Rp8.96 trillion in 2009. Company Secretary of AKR Corporindo Suresh Vembu said that most the company’s revenue was contributed by non-subsidized fuel distribution sector. The remaining was generated from chemical goods and manufacture sector.

“In the other hand, we also have coal mining business. However, the business has not yet given any significant contribution to the company. We estimate it can commercially produce in the second half of 2011,” he said, today.
During 2010, the distributed fuel volume of AKR was 1.35 million kilo liter, while in this year it is predicted to rise 30%. One of the company’s efforts is the opening of fuel distribution centers in several areas.
Besides Java, AKR will also open distribution center in Sumatra, Kalimantan, Sulawesi and Eastern Indonesia.

"We will focus to open distribution sites in eastern Indonesia by opening a new distribution center in 31 standing points,"said Suresh Vembu.
To finance the business expansion, AKR allocates capital expenditures of US$100 million. One of the business expansion includes the construction of fuel terminals in various locations. By the end of 2010, AKR disposed 68.82% shares in PT Sorini Agro Asia Corporindo Tbk to a US company, Cargill. From the selling action, AKR obtained fresh funds amounting to US$245 million.

According Vembu, the selling action has to be done since there is a buyer who dares to set high price, with price to earnings ratio (P/E) up to 28 times.
“Now, it is impossible to have prospective buyer who want to give such high price. The consideration became our basis to dispose our share in Sorini,” he said.