Bakrie & Brothers Books Profit After 3 Years of Losses
Ivan Dasa Saputra
After three consecutive years of net losses, Bakrie & Brothers, a holding company linked to senior Indonesian politician Aburizal Bakrie, posted a net profit of Rp 132 billion ($14 million) in 2011.
“This is the first profit after three consecutive years of having posted a loss,” the company’s finance director, Eddy Soeparno, said after a Bakrie & Brothers (BNBR) general annual shareholder meeting in Jakarta.
Eddy said the net profit reflected the impact of a quasi-reorganization by the company.
BNBR president director Bobby Gafur Umar said the net profit was supported by corporate revenues that stood at Rp 16.2 trillion in 2011. The largest increase, he said, was from the trade, services and investment sector, which grew from Rp 8.41 trillion in 2010 to Rp 10.55 trillion last year.
Bobby said the profit and better revenues showed that the company’s recent restructuring was proceeding well, while admitting that the current global economic crisis was making it a challenge to get funding from the bourse and other financial institutions to finance infrastructure projects.
“This challenge is almost certain to continue in 2012 and we have prepared a series of strategies and are optimistic that we can face the challenge,” Bobby said.
The corporation is also planning to continue efforts to reduce its debt obligations. BNBR’s debt-to-equity ratio fell from 93.24 percent in 2010 to 88.03 percent in 2011.
Eddy said BNBR was preparing several options to settle its debt with several international creditors. BNBR’s creditors include Credit Suisse, to which it owes $437 million.