ESSA - Potential growth supported by pricing and expansion

ESSA - Potential growth supported by pricing and expansion Essa Industries Indonesia (ESSA) is set to benefit from sustained high ammonia prices and its expansion into low-carbon initiatives. Despite a 12.62% you decline in revenue to USD301.40 mn in 2024, net profit surged 30.54% yoy to USD45.18 mn, supported by stable production, lower gas costs, and a 43% yoy reduction in bank debt. The company is also diversifying into Sustainable Aviation Fuel (SAF) through a joint venture using used cooking oil, positioning itself as a key player in Indonesia’s energy transition. With ammonia contributing 85% of its total revenue, ESSA is expected to gain from potential increases in natural gas prices, reinforcing its strong long-term growth prospects. (Source : Kontan)