Maritime and fisheries are considered future growth engine of Indonesia. At least, President Joko Widodo believes that. Minister of marine and fisheries affair Susi Pudjiastuti, in her own ways, gives a boost to the industry.
As explained earlier, not many companies in the marine and aquaculture industry are listed on Indonesia Stock Exchange (IDX). In this issue, let’s revisit Central Proteina Prima (CPRO), unit of Charoen Pokphand Group (Thailand), which is one of the region’s largest shrimp producers.
CPRO generated sales revenue of Rp6.8 trillion in nine months of 2014, grew 22.3% from the corresponding period of 2013. The Company, unfortunately, booked net loss of Rp200 billion in the period, even though it is a significant improvement from net loss of Rp746 billion it booked in nine months of 2013.
As you can see in the table, CPRO’s operations actually improved with gross profit growth of 28% to Rp1.04 trillion. It posted operating profit of Rp168 billion in the period against loss of Rp60 billion in nine months of 2013.
We see even better performance in third quarter with sales revenue growth of 26% and operating profit of Rp83 billion (almost half from 9M total).
The Company’s main pending issue was settlement of US$325 million bonds due 2012 issued in June 2007.
But, looks like that banks have revisited the company. In February 2014, for example, Bank BRI Agro, subsidiary of BBRI, increased investment loan facility by Rp50 billion. This is the first long-term bank loan provided to CPRO in years.
In September 2014, Bank QNB Kesawan provided up to US$12 million general banking facility to CPRO. This one, however, is a short-term facility due next September.
Indonesian Eximbank has also amended various loan facilities granted to CPRO in May 2014, including L/C facility of US$30 million, working capital US$10 million, and export investment credit facility of US$3 million.
Last September, CP Prima claimed of its ability to fight the IMNV virus, which hurt the company’s shrimp production in the past few years. The Company is now optimistic to reach a production target of 14,000 tons this year. In the first half, the Company harvested 4798 tons only.
DISCLAIMER: NO POSITION IN STOCKS MENTIONED IN THIS ARTICLE
