Supported by the sheen of Coal, SMCB Books a Profit of IDR 459 M

Jakarta, CNBC Indonesia – State-owned cement issuer, PT Solusi Bangun Indonesia Tbk (SMCB), posted a net profit of Rp 459 billion in the first nine months of this year.

The net profit was up 4.79% from the same period in the previous year of Rp 438 billion.

In the first nine months of this year, the company posted revenue of Rp 8.07 trillion, up 10.14% from the previous Rp 7.33 trillion. Meanwhile, the sales volume of cement and slag including exports in the January to September period amounted to Rp 9.83 trillion from the previous Rp 8.71 trillion.

The President Director of SBI, Aulia Mulki Oemar said, amid the situation and conditions of restrictions to prevent the spread of the Covid-19 outbreak, national construction activities took place more actively in the second semester of 2021.

Until the end of September 2021, domestic cement consumption was recorded to have increased by 5.51% and exports by 35.49% compared to the same period last year. Through synergies with SIG, SBI recorded an increase in the total sales volume of cement and slag by 12.95% compared to the same period last year.

However, in general, the map of the national cement industry is still quite heavy. Not yet separated from the Covid-19 pandemic and market overcapacity, the cement industry is now also affected by rising coal prices which have soared due to the global energy crisis. According to the Indonesian Cement Association (ASI), coal as the main energy source in cement production contributes an average of around 30% to production costs.

In response to this, SBI strengthens synergies with GIS and seeks efficiency in the use of coal. Various efficiency efforts made by the company helped SBI to maintain positive EBITDA and recorded a net profit of Rp459 billion.

“Not only cement, but other coal-using industries such as textiles and paper are now very worried about the supply and rising coal prices. Through synergies with GIS, we try to continue to meet customer needs for housing and construction projects, both private and government,” said Aulia.

[Gambas:Video CNBC]

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