Steel Pipe Industry of Indonesia Performance

By administrator | November 4, 2020 | Basic Industry.

Steel Pipe Industry of Indonesia Performance. PT Steel Pipe Industry of Indonesia Tbk (ISSP) is aiming for a conservative target this year. The steel pipe issuer with the ISSP share code hopes to at least match the performance realization in 2019. As an illustration. The ISSP record sales and service revenues of IDR 4.88 trillion in 2019.

After the sales and service revenues are deduct from the cost of revenue and other expenses. ISSP pocket the profit for the year attributable to the owner of the parent entity. Or net profit of Rp 185.70 billion in 2019. Chief Strategy Officer of PT Steel Pipe Industry of Indonesia Tbk Johannes Edward said.

ISSP will try to maximize the remaining time in the fourth quarter of 2020 to pursue the target. I think we still have 3 months for the top line. Even though it’s hard, we will try to at least equalize (performance) with last year’s, as well as the bottom line, said Johannes. During the first nine months of this year.

As well as ISSP performance realization was still lower than the same period last year. It is record that sales and revenue from ISSP services decrease by 24.75% on an annual basis, aka year-on-year (yoy), from IDR 3.60 trillion in January-September 2019 to IDR 2.71 trillion in January-September 2020.

Steel Pipe Industry of Indonesia Revenue

Equivalent to sales and service revenue, ISSP’s net profit also fell 59.55% yoy from Rp 122.24 billion in January-September 2019 to Rp 49.43 billion in January-September 2020. In addition to the decline in topline performance , the lower bottom line performance was also driven by foreign exchange losses.

Launching the company’s financial report, ISSP record a foreign exchange loss of Rp 32.05 billion during January-September 2020. Previously, this account did not exist in the same period last year. Apart from the results of the annual decline, ISSP is optimistic that there are still business opportunities that can be exploit.

Because ISSP has seen signs of recovery in the 3rd quarter of 2020. Johannes said, even though the accumulate sales and service revenue of ISSP in the first nine months still experience a decline yearly compare to the same period last year, the realization of ISSP sales and service revenue experience a quarterly growth.

Up to 70.8% compare to the second quarter of 2020. In line with this, the company’s production utilization also increase from its lowest point of 36% in the second quarter of 2020 to 57% in the third quarter of 2020. According to Johannes, the quarterly performance growth was driven by demand for steel pipes.

Steel Pipe Industry of Indonesia Sales

From the construction sector. In addition, this increase was also inseparable from the contribution of sales in the East Java region, whose demand was not greatly affect by the effect of the corona scroll. ISSP hopes that the market recovery trend can continue in the fourth quarter.

So that the company’s production utilization can return to normal levels of 65%. To welcome existing market opportunities, ISSP will continue to intensify its existing sales strategy. What is certain is that our sales team will continue to be encourage to pick up the ball by intensifying customer relationship management, explain Johannes.

Apart from spurring sales, ISSP also utilizes the use of local raw materials. Apart from supporting the local raw material supplier industry, this also helps companies to minimize the effect of exchange rate differences in purchasing raw materials. Currently, the share of local raw materials use in ISSP production activities has reach 45%.

An increase from the original portion which only reach 36% in the first quarter of this year. One of the local raw material supplies is obtain from PT Krakatau Steel (Persero) Tbk.