AKRA – Performance projections influenced by petroleum distribution margins and property business

AKRA – Performance projections influenced by petroleum distribution margins and property business AKR Corporindo (AKRA) is projected positive profits in line with the property business from higher sales of KEK JII-PE. However, AKRA's revenue will be affected by lower petroleum distribution margins. Currently, AKRA's oil inventory levels continue to improve to the 5-year historical average level since March 2024, from tight inventory levels in 2022-2023. The fuel trading segment also still produces stable volumes. AKRA projects that the B2B fuel sales business has the potential to grow 5-6% yoy due to high client demand in Kalimantan and Sulawesi. Note that, AKRA posted a decrease in revenue of IDR9.81 tn (-10.49% yoy) and a net profit of IDR595 bn in 1Q24 due to a decline in ASP in petroleum and basic chemicals as well as heavy rains at operational sites. The revenue consisted of the trade and distribution segment worth IDR9.02 tn, manufacturing and logistics worth IDR401 bn and industrial estate at IDR387 bn. (Source : Kontan)