Chandra Asri Pacific (TPIA) Q2 2024 earnings summary

Executive summary

• Maintained a strong balance sheet with $2.29 billion in liquidity, including $1.14 billion in cash and $0.94 billion in marketable securities.

• Signed an agreement to acquire Shell's Energy and Chemicals Park Singapore, expanding regional presence.

• Shares included in the MSCI Global Standard Index for Emerging Markets.

• Received three awards at the Global CSR & ESG Summit and Awards 2024 for leadership, community programs, and environmental excellence.

• Revenue for the six months ended June 30, 2024 was US$866.5 million, down 19% year-over-year from US$1,074.3 million.

Financial highlights

• Net revenues reached $866.5 million for YTD June 2024, with polyolefins contributing 58.7%.

• Gross profit margin fell to 1.5% from 4.4% year-over-year.

• Net loss attributable to owners was US$47.5 million, compared to a net loss of US$0.6 million in the same period last year.

• EBITDA and EBIT were negative, reflecting operational losses.

• Debt-to-capitalization ratio at 39% as of June 30, 2024.

Outlook and guidance

• Projected approximately 5x revenue growth from 2024 to 2026, driven by the SECP acquisition.

• Expected to become the 5th largest chemical solutions company in Southeast Asia by capacity.

• The company remains optimistic about recovery in demand as China reopens and global economic activity resumes.

• Management continues to focus on operational efficiency, digital transformation, and ESG initiatives.

• Expansion plans in chemicals and infrastructure are ongoing, with major projects expected to complete by 2026-2027.