CAP 2015

Company Snapshot

Slowdown in economic growth of indonesia in 2015 which stood 4.7 % decreased income of corporation in petrochemical industry segment. Chandra Asri Petrochemical as the main player in petrochemical industry experienced a decrease in its revenue. The sales volume fell due to decline in demand from the customer. The decrease of revenue was not only occurred by the dropped sales volume but it was also happening because the decline in its naphtha price in line with the decline in oil price at global market.

The net revenue in 2015 dropped -44 in comparison with net revenue in 2014. However, the company was able to improve their margin as its value chain in its business has been developed better in 2015. Net profit margin increased from 0.7 % in 2014 to 1.9 % in 2015. So did the gross margin, it increased from 7.3 % in 2014 to 15.1 % In 2015. The lower price of raw material might also advance the gross margin in 2015.

 The decline of sales was also caused by the scheduled turn around maintenance activities, the company shut down the naphtha cracker facilities for 85 days. As the result of that, the utility of the factory is not at the maximum point.

The company hired Toyo engineering to conduct cracker expansion project to produce naphtha cracker. Toyo engineering has been commencing the project since 2013. Another project was Synthetic rubber plant worth US 435 million in Cilegon, Banten. The plant will start to produce in 2018, it is a joint venture between the company and Financiere Du Groupe Michelin.