MARKET DEVELOPMENT
Bakrie Plantations Won’t Expand This Year
Bakrie Plantations Won’t Expand This Year
11/06/2014 (Jakarta Post) - Agriculture firm PT Bakrie Sumatera Plantations (UNSP) is confident it can maintain its financial performance in the first quarter of this year particularly by focusing on its existing assets optimization.
The company has no plan for business expansion this year.
UNSP president director M. Iqbal Zainuddin said on Tuesday the company was focusing on how to maximize its existing assets to get better revenue.
“We will maintain our first quarter financial performance by optimizing existing assets,” he said after a shareholders meeting, which failed to reach a quorum.
UNSP investor relation director Andi W. Setianto added that the company this year did not have any plans to expand its plantations or factories because it felt its current assets were enough to sustain productivity.
Increasing the yields of the firm’s factories and developing palm oil superior seeds are ones of the ways to improve productivity without expansion, he said, adding that the strategy to optimize existing assets had no any correlation with effort to maintain corporate debt ratio.
According to him, UNSP’s sales increased by 37 percent in the first quarter of this year to Rp 659 billion (US$55.8 million) from Rp 481 billion on the same period last year. The company also recorded a net profit of Rp 296 billion in the first quarter of this year, a turnaround from its net loss of Rp 63 billion in the same quarter last year.
The company has no plan for business expansion this year.
UNSP president director M. Iqbal Zainuddin said on Tuesday the company was focusing on how to maximize its existing assets to get better revenue.
“We will maintain our first quarter financial performance by optimizing existing assets,” he said after a shareholders meeting, which failed to reach a quorum.
UNSP investor relation director Andi W. Setianto added that the company this year did not have any plans to expand its plantations or factories because it felt its current assets were enough to sustain productivity.
Increasing the yields of the firm’s factories and developing palm oil superior seeds are ones of the ways to improve productivity without expansion, he said, adding that the strategy to optimize existing assets had no any correlation with effort to maintain corporate debt ratio.
According to him, UNSP’s sales increased by 37 percent in the first quarter of this year to Rp 659 billion (US$55.8 million) from Rp 481 billion on the same period last year. The company also recorded a net profit of Rp 296 billion in the first quarter of this year, a turnaround from its net loss of Rp 63 billion in the same quarter last year.