TIDMJDS TIDMJAR
RNS Number : 2497R
Jardine Strategic Hldgs Ltd
27 February 2019
To: Business Editor 27th February 2019
For immediate release
PT Astra International Tbk
2018 Full Year Financial Statements
The following announcement was issued today by the Company's
75%-owned subsidiary, Jardine Cycle & Carriage Limited, which
holds 50.1% of PT Astra International Tbk.
For further information, please contact:
Jardine Matheson Limited
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Karin Wong (852) 3512 5077
27th February 2019
PT ASTRA INTERNATIONAL TBK
2018 FULL YEAR FINANCIAL STATEMENTS
Highlights
-- Net earnings per share up 15% at Rp535
-- Higher coal prices benefit heavy equipment, mining contracting and mining revenue
-- Improved earnings contribution from financial services
-- Automotive market improved, with higher motorcycle and car sales
-- Lower crude palm oil prices adversely impact agribusiness
"The Group achieved satisfactory results in 2018, but 2019 is
likely to be a more challenging year, owing to macro economic
uncertainties, the highly competitive car market and lower
commodity prices."
Prijono Sugiarto
President Director
Group Results
For the years ended 31st December
2018 2017* Change
Rp bn Rp bn %
---------------- ----------- -------
Net revenue 239,205 206,057 16
---------------- ----------- -------
Net income 21,673 18,847 15
---------------- ----------- -------
Rp Rp
---------------- ----------- -------
Net earnings per
share 535 466 15
---------------- ----------- -------
As at 31st As at 31st Change
December 2018 December %
Rp bn 2017*
Rp bn
---------------- ----------- -------
Shareholders' funds 136,947 123,780 11
---------------- ----------- -------
Rp Rp
---------------- ----------- -------
Net asset value
per share 3,383 3,058 11
---------------- ----------- -------
* Restated due to implementation of PSAK No. 69: Agriculture
The financial results for the year ended 31st December 2018 and
2017 as well as the financial position as at 31st December 2018 and
2017 have been prepared in accordance with Indonesian Financial
Accounting Standards and audited in accordance with the auditing
standards established by the Indonesian Institute of Certified
Public Accountants.
PRESIDENT DIRECTOR'S STATEMENT
Overview
The Group's net earnings were higher in 2018, mainly due to
increased contributions from its heavy equipment, mining,
construction and energy, and financial services businesses, which
more than offset lower contributions from its agribusiness and
automotive businesses. While the weakening of the Rupiah during the
year led to margin pressure in the Group's manufacturing
operations, the impact was more than offset by the positive impact
on its contract mining and automotive export activities.
Performance
The Group's consolidated net revenue for the year increased by
16% to Rp239.2 trillion, with higher revenue achieved in most
business segments, especially from heavy equipment, mining,
construction and energy, and automotive.
The Group's net income was Rp21.7 trillion, 15% higher than the
previous year.
The net asset value per share was Rp3,383 as at 31st December
2018, 11% higher than at the end of 2017.
Net debt, excluding the Group's financial services subsidiaries,
was Rp13.0 trillion at the end of 2018, down from a net cash
position of Rp2.7 trillion at the end of 2017, due mainly to the
Group's investments in its toll road businesses, a gold mining
concession and GOJEK. The Group's financial services subsidiaries
had net debt of Rp47.7 trillion, compared with Rp46.1 trillion at
the end of 2017.
A final dividend of Rp154 per share (2017: Rp130 per share) will
be proposed at the Annual General Meeting to be held in April 2019.
The proposed final dividend, together with the interim dividend of
Rp60 per share (2017: Rp55 per share), will bring the total
dividend for the year to Rp214 per share (2017: Rp185 per
share).
Business Activities
Net income attributable to shareholders by business segment was
as follows:
Net Income Attributable to Astra
International
for the years ended 31st December
--------------------------------------
2018 2017* Change
Rp bn Rp bn %
------------ ----------- -----------
Automotive 8,518 8,868 (4)
------------ ----------- -----------
Financial Services 4,815 3,752 28
------------ ----------- -----------
Heavy Equipment, Mining, Construction
and Energy 6,630 4,469 48
------------ ----------- -----------
Agribusiness 1,146 1,568 (27)
------------ ----------- -----------
Infrastructure and Logistics 196 (231) N/A
------------ ----------- -----------
Information Technology 208 198 5
------------ ----------- -----------
Property 160 223 (28)
------------ ----------- -----------
Attributable Net Income 21,673 18,847 15
------------ ----------- -----------
* Restated due to implementation of PSAK No. 69: Agriculture
Automotive
Net income from the Group's automotive division was 4% lower at
Rp8.5 trillion, mainly due to lower operating margins despite
higher automotive sales.
The wholesale market for cars was 7% higher in the year compared
to 2017 at 1.15 million units. Astra's car sales were 1% higher at
582,000 units, but increased competition resulted in a decline in
market share from 54% to 51%. The Group launched 18 new models and
seven revamped models during the year.
The wholesale market for motorcycles increased by 8% to 6.4
million units. Astra Honda Motor's domestic sales increased by 9%
to 4.8 million units, with its market share stable at 75%. The
Group launched six new models and 19 revamped models during the
year.
Astra Otoparts, the Group's automotive components business,
reported net income 11% higher at Rp611 billion, with increased
revenues from its original equipment manufacturing and replacement
market segments.
Financial Services
Net income from the Group's financial services division
increased by 28% to Rp4.8 trillion. This resulted from improved
contributions from its consumer finance, banking and general
insurance businesses.
The net income contribution from the Group's car-focused finance
companies increased by 26% to Rp1.2 trillion, mainly due to lower
loan loss provisions and an increased shareholding in Astra Sedaya
Finance. The net income contribution from motorcycle-focused
Federal International Finance was 16% higher at Rp2.3 trillion,
reflecting a larger loan portfolio. The Group's consumer finance
businesses overall saw a 1% decrease in the amount financed to Rp81
trillion during the year, due to a reduction in the amount financed
in the low cost car segment.
The net income contribution from the Group's heavy
equipment-focused finance operations increased by 30% to Rp86
billion, partly due to lower loss provisions. The amount financed
decreased by 12% to Rp5.2 trillion, mainly due to reduced lending
to the small and medium-sized segment.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of Rp901 billion, compared to Rp748 billion in 2017,
mainly due to increased net interest income and recoveries from
non-performing loans. The bank's gross non-performing loan ratio
was 4.4% at the end of 2018 compared to 4.6% at the end of 2017,
while its net non-performing loan ratio was stable at 1.7%.
Asuransi Astra Buana, the Group's general insurance company,
reported net income 4% higher at Rp1.0 trillion, primarily due to
higher investment income. During the period, the Group's life
insurance joint venture, Astra Aviva Life, acquired more than
339,000 new individual life customers and more than 713,000 new
participants for its corporate employee benefits programmes.
Heavy Equipment, Mining, Construction and Energy
Net income from the Group's heavy equipment, mining,
construction and energy division increased by 48% to Rp6.6
trillion.
United Tractors, which is 59.5%-owned, reported net income of
Rp11.1 trillion, 50% higher than the previous year, mainly due to
improved performances in its construction machinery, mining
contracting and mining operations, all of which benefited from
higher coal prices compared with 2017.
Within United Tractors' construction machinery business, Komatsu
heavy equipment sales rose 29% to 4,878 units, while parts and
service revenues were also higher. The mining contracting
operations of wholly-owned Pamapersada Nusantara recorded a 22%
increase in overburden removal volume at 979 million bank cubic
metres and 11% higher coal production at 125 million tonnes. United
Tractors' coal mining subsidiaries reported an 11% increase in coal
sales to 7 million tonnes, including sales of 807,000 tonnes of
coking coal by 80.1%-owned Suprabari Mapanindo Mineral which became
operational in late 2017. Agincourt Resources, in which United
Tractors acquired a 95% interest in December 2018 and which
operates a gold mining concession in Sumatera, reported gold sales
of 35,000 oz in December 2018.
Acset Indonusa, United Tractors' 50.1%-owned general contractor,
reported a 88% decrease in net income to Rp18 billion, mainly due
to increased financing costs. Rp1.6 trillion of new construction
projects were secured during 2018.
25%-owned Bhumi Jati Power is in the process of constructing two
1,000MW power plants in Central Java, which are scheduled to start
commercial operation in 2021.
Agribusiness
Net income from the Group's agribusiness division was down 27%
at Rp1.1 trillion.
Astra Agro Lestari, which is 79.7%-owned, reported a 27% decline
in net income to Rp1.4 trillion, primarily due to a fall in crude
palm oil prices, which were 12% lower at Rp7,275/kg compared with
the average in 2017. This more than offset a 30% increase in crude
palm oil and derivatives sales to 2.3 million tonnes.
Infrastructure and Logistics
The Group's infrastructure and logistics division reported a net
income of Rp196 billion in 2018, compared to a net loss of Rp231
billion in the prior year. This was mainly due to improved earnings
from the Tangerang-Merak toll road and Serasi Autoraya, as well as
the inclusion in the prior year's results of a one-off loss on the
disposal of the Group's 49% interest in PAM Lyonnaise Jaya.
Astra has interests in 302km of operational toll roads along the
Trans-Java network, with a further 11km in Greater Jakarta under
construction. Toll revenue from the 79.3%-owned 72.5km
Tangerang-Merak toll road increased by 10% to Rp1.1 trillion, while
the wholly-owned 40.5km Jombang-Mojokerto toll road, which became
fully operational in December 2018, recorded Rp213 billion of toll
revenue during the year. Toll revenue from the 45%-owned 116.8km
Cikopo-Palimanan toll road increased by 12% to Rp1.4 trillion. The
40%-owned 72.6km Semarang-Solo toll road recorded a 39% increase in
toll revenue to Rp248 billion.
Serasi Autoraya's net income increased by 50% to Rp302 billion,
primarily due to improved operating margins in its car leasing and
rental businesses. Its vehicles under contract decreased 2% to
23,000 units.
Information Technology
Net income from the Group's information technology division was
5% higher at Rp208 billion.
Astra Graphia, which is 76.9%-owned, reported net income of
Rp270 billion, 5% higher than the previous year as a result of
increased revenue from its document and IT solutions
businesses.
Property
The Group's property division reported a 28% lower net profit at
Rp160 billion, due mainly to reduced development earnings
recognised from its Anandamaya Residences project as a result of
lower percentage completion during the period in its final stages
of construction.
The Group's other projects include interests in Arumaya in South
Jakarta and Asya in East Jakarta, both residential projects, and a
3-hectare residential and commercial development in Jakarta's
Central Business District.
Prospects
The Group achieved satisfactory results in 2018, but 2019 is
likely to be a more challenging year, owing to macro economic
uncertainties, the highly competitive car market and lower
commodity prices.
Prijono Sugiarto
President Director
27th February 2019
For further information, please contact:
PT Astra International Tbk
Pongki Pamungkas, Chief of Corporate Affairs
Tel: +62 - 21 - 5084 3888
-end-
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