Posted on 11 Jun 2024
Indonesian steel maker Krakatau Steel posted a net loss of $131.65 million in 2023 as compared to a net profit of $22.64m a year earlier, due to debt interest and foreign exchange losses, Kallanish notes.
The firm says in a bourse filing that the losses were due to a high financial burden of $129.59 million and foreign exchange losses worth $9.62 million.
The losses were also due to the impacts of its non-operation of the Hot Strip Mill 1 (HSM#1) facility, the main producer of hot rolled coil (HRC), due to damage to the finishing mill switch house.
The corporate action of divesting shares in several subsidiaries including subholding Krakatau Sarana Infrastruktur to repay debts also had an impact on the performance because it will no longer be consolidated into the Krakatau Steel Group.
Meanwhile, the firm's revenue for the year fell 35.05% year-on-year to $1.45 billion from $2.24 billion a year earlier.
According to the firm’s president director Purwono Widodo, the company is working on restarting HSM#1.
The repairs will be carried out in the fourth quarter of 2024 and will be completed this year. The firm is anticipating the first production of HRC products after that.
“Our priority is to maintain our performance by completing the repairs to HSM#1 facilities according to the targeted schedule operating again at the end of 2024. In line with this, Krakatau Steel is also working on further restructuring of remaining debt with creditors and shareholders,” Widodo adds.
Source:Kallanish
