Posted on 12 Jul 2022
Indonesia's PT Krakatau Steel Tbk (KRAS) estimates its net profit to reach IDR 941.4 billion ($62.85 million) in the first half of 2022, an increase of 89.6% compared to the same period in 2021. By increasing production, KRAS was able to increase revenue by 29.8% to IDR 20.6 trillion in H1 2022, Kallanish learns from the company's public data.
Meanwhile, its steel production and sales rose by 10.2% and 10.5% on-year to 1.11 million tonnes and 1.09mt. The growth in sales of KRAS' main products (hot-rolled coil and cold-rolled coil) was supported by sales of downstream steel products such as ERW steel pipes, roofing products, guardrails and other products.
The steel plant reduced variable costs by 7.5% in H1 of this year, KRAS president Silmy Karim says. The company's cash flow is getting stronger, and the capital structure is also being optimised, Melati Sarnita, commercial director of KRAS, said earlier.
KRAS is currently finalising its Hot Strip Mill 2, restarting the integrated strip mill and finalising its blast furnace project with partners. It plans to operate the 1.2mt/y blast furnace in the third quarter of 2022 under cooperation with Baowu Zhongnan Steel (see Kallanish passim), and targets supplying steel to the automotive industry within three years.
Source:Kallanish
