Jakarta, CNBC Indonesia – The state-owned steel producer, PT Krakatau Steel (Persero) Tbk (KRAS), recorded a profit of Rp 1.06 trillion for the period of November 2021.
In the same period, the company posted revenue of Rp. 30 trillion, an increase of 66.8% compared to revenue in the same period in 2020.
Krakatau Steel’s Finance Director, Tardi said, Krakatau Steel achieved EBITDA realization of Rp 2.2 trillion in November this year, an increase of 105% compared to EBITDA in the same period in 2020.
“We convey the performance of Krakatau Steel until November 2021 to restore market confidence, creditors, vendors that Krakatau Steel’s performance is getting better. We are also confident that in 2021 we will again record profits, even increasing from the profit for the 2020 financial year,” said Tardi, in an official statement, Wednesday (15/12/2021).
In line with that, Tardi also explained that Krakatau Steel would fulfill its debt obligations of USD 200 million to three state-owned banks, namely PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk, and PT Bank Rakyat Indonesia (Persero) Tbk. ., which matures in December 2021.
“We are committed to paying these obligations. With the support from the Ministry of SOEs, Krakatau Steel is currently preparing steps so that we can pay these obligations on time,” added Tardi.
Tardi further stated that the various strategic initiatives carried out such as efficiency, digitization, and organizational optimization made Krakatau Steel further strengthen its competitiveness in the national steel market. As a result, Krakatau Steel posted improved performance in each period.
Previously, this state-owned steel company was mentioned by the Minister of SOEs, Erick Thohir, that he would go bankrupt in December this year if he did not take a number of restructuring steps.
“There are three steps (restructuring), the problem is that the third step is stuck,” said Erik in a Working Meeting with Commission VI DPR RI, last Thursday, quoted Saturday (4/12/2021).
Erick said that there was an investment in Krakatau Steel in the manufacture of a blast furnace factory worth US$ 850 million in 2008, but the condition was stalled, and it did not provide any benefits. There was hope that this project would be taken over by China but failed.
Then the second step is being taken regarding work negotiations with one of the steel companies Posco as the largest shareholder of KRAS (issuer code Krakatau Steel), with a share of 70%.
The final step is the possibility of the Investment Management Institute (LPI) or the Indonesia Investment Authority (INA) to invest in Krakatau Steel. Erick explained that if these three steps don’t work, then Krakatau Steel in December can do it default.
(sys / hps)
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