Dian Kuswandini, The Jakarta Post , Jakarta | Wed, 05/14/2008 10:32 AM | Business
PT AKR Corporindo, a top chemicals and fuel distributor in the country, will invest US$90 million for the construction of a fuel tank terminal to strengthen its fuel storage and distribution business.
AKR's business unit director Jimmy Tandyo said Tuesday the project that will be located in Tanjung Priok would be the company's focus once two ongoing projects in South Kalimantan and Bali were completed.
He said the Tanjung Priok project, scheduled to be completed by December next year, would increase company fuel storage capacity by 250,000 kiloliters.
The company currently has a fuel storage capacity of around 180,000 kiloliters.
Jimmy said he was upbeat about the company's performance this year, after the company recorded an encouraging showing in the first quarter.
"We expect an increase of 40 percent in net profits this year from Rp 191 billion last year," Jimmy said after a shareholders' meeting in Jakarta.
In this year's first quarter, AKR booked Rp 83 billion in net profits, a 92 percent increase from the same period last year.
The company's fuel distribution unit was its most profitable, contributing 44 percent to the net profit. The remainder came from chemical trading, manufacturing and logistics services.
Corporate secretary V. Suresh said an increase in fuel demand had contributed to AKR's robust financial performance.
"The fuel demand allowed us to expand our petroleum products business in Indonesia, as well as fuel storage and distribution services," Suresh said.
Established in 1977, AKR focuses on distributing fuels and chemicals in Indonesia and China. It has seven subsidiaries and boasts some 2,000 industrial customers throughout the world.
As a chemical distributor, AKR leads the local market with a 95 percent business share. AKR proclaims itself to be the largest producer and distributor of Sorbitol in Asia Pacific, and the second largest in the world.
According to company data, AKR's assets were worth almost Rp 3.5 trillion as of last year.
PT AKR Corporindo, a top chemicals and fuel distributor in the country, will invest US$90 million for the construction of a fuel tank terminal to strengthen its fuel storage and distribution business.
AKR's business unit director Jimmy Tandyo said Tuesday the project that will be located in Tanjung Priok would be the company's focus once two ongoing projects in South Kalimantan and Bali were completed.
He said the Tanjung Priok project, scheduled to be completed by December next year, would increase company fuel storage capacity by 250,000 kiloliters.
The company currently has a fuel storage capacity of around 180,000 kiloliters.
Jimmy said he was upbeat about the company's performance this year, after the company recorded an encouraging showing in the first quarter.
"We expect an increase of 40 percent in net profits this year from Rp 191 billion last year," Jimmy said after a shareholders' meeting in Jakarta.
In this year's first quarter, AKR booked Rp 83 billion in net profits, a 92 percent increase from the same period last year.
The company's fuel distribution unit was its most profitable, contributing 44 percent to the net profit. The remainder came from chemical trading, manufacturing and logistics services.
Corporate secretary V. Suresh said an increase in fuel demand had contributed to AKR's robust financial performance.
"The fuel demand allowed us to expand our petroleum products business in Indonesia, as well as fuel storage and distribution services," Suresh said.
Established in 1977, AKR focuses on distributing fuels and chemicals in Indonesia and China. It has seven subsidiaries and boasts some 2,000 industrial customers throughout the world.
As a chemical distributor, AKR leads the local market with a 95 percent business share. AKR proclaims itself to be the largest producer and distributor of Sorbitol in Asia Pacific, and the second largest in the world.
According to company data, AKR's assets were worth almost Rp 3.5 trillion as of last year.