Indonesian Steel Maker PT Krakatau Steel Projects Net Income to Jump 89.6 Percent in the First Half of 2022

JAKARTADAILY.ID – State-owned steel producers PT Krakatau Steel Tbk, projected its net income to jump 89.6 percent in the first half of this year (H1 2022), thanks to stronger sales volume.

Silmy Karim, the President Director of Krakatau Steel said in a recent statement that the state-owned company projected net income in H1 2022 to jump to Rp 941.4 billion from Rp 496.3 billion in the corresponding period last year.

PT Krakatau Steel, listed on the Indonesia Stock Exchange with KRAS stock ticker, is engaged in the field of iron and steel industry.

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The company's chief said he projected that sales volume from various of its products to rise 10.5 percent to 1,099,000 tons from 995,000 tons. On the production spectrum, KRAS is expected to book a 10.2 percent rise to 1,111,000 tons. 

"The sales volume increase is supported by a strong performance of Krakatau Steel's products, which are Hot Rolled Coil and Cold Rolled Coil. This performance is also supported by a program to improve the company's downstream businesses," he said in the statement. 

In the downstream sector, PT Krakatau Steel saw the sales of its steel-related products skyrocketed by 206 percent to 14,400 tons.

The production of Electric Resistance Welding (ERW) steel products also increased by 21.45 percent to 15,613 tons.

Along with the company's sharp productivity increase, the total revenue of KRAS also increased by 29.8 percent to Rp 20,6 trillion.

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KRAS said its sales revenue for steel-related products from its downstream businesses jumped 179 percent to Rp 218 billion.

Krakatau Steel is serving various market segments, including clients that need steel products, infrastructure facilities, engineering and construction, and other services.

Silmy said in overall, sales in construction-related steel products and pipe steel, have helped boost the company's revenue to Rp 2.5 trillion from Rp 2.1 trillion. He said KRAS also successful in reducing its variable costs by 7.5 percent.

Krakatau Steel's shares were down 0.57 percent to close at Rp 348 on Tuesday.