Krakatau Steel Posts US$149.8mn Net Loss
13 March 2015 14:16 WIB
TEMPO.CO, Jakarta - PT Krakatau Steel (Persero) Tbk (IDX: KRAS) recorded a net loss of US$ 149.8 million or around Rp1.97 trillion last year. President director Irvan Kamal Hakim said the loss was caused by the decline of global steel prices, the rupiah depreciation, and the losses recorded by subsidiary PT Krakatau Posco.
Krakatau Posco last year recorded a loss of US$236 million, with 30% stake in Posco, KRAS was forced to bear a loss of US$71.6 million. In addition, Krakatau Posco only started running in early 2014, so that it needed 2.5 months before it can start production.
Krakatau Steel recorded 10.3-percent revenue decline to US$1.86 billion due to a 2.5 percent decline in sales volume, following the collapsed prices of steel in global markets and the rupiah correction against the US dollar throughout last year.
"Raw materials and energy are purchased in US dollars. They account for 80 percent of the total cost of production," Irvan said.
First Asia Capital analyst David Sutyanto said that the rupiah correction will pressure the performances of Indonesia's largest steel producer. To date, Krakatau Steel is still importing raw materials for iron ore.
This year, the company has allocated US$500 million for capex, of which US$400 million will be used to construct a blast furnace. US$57 million is allotted for its subsidiaries and the remaining US$13 million is earmarked for working capital.
ADITYA BUDIMAN | DEVY ERNIS