PT Krakatau Steel (Persero) Tbk, on May 31, 2024, announced the release of its 2023 Financial Statements. The report reveals the consolidated financial position as of December 31, 2023, as well as the financial performance and cash flows for the year, all in accordance with Indonesian Financial Accounting Standards.
Krakatau Steel's CEO, Purwono Widodo, explained that in 2023, the company recorded revenues of US$1.45 billion or approximately Rp22.45 trillion. There was a 6% decrease in operating expenses compared to the previous year, amounting to US$125.33 million or approximately Rp1.94 trillion in 2023. Additionally, there was a positive contribution from the share of profits from associate entities amounting to US$41.41 million or approximately Rp0.64 trillion.
Purwono also conveyed that total liabilities were reduced by 10%, from USD2.61 billion to USD2.35 billion in 2023, mainly due to partial debt repayment sourced from subsidiary divestments and land optimization.
Despite financial burdens and foreign exchange losses, the company maintained a positive cash flow, with a year-end cash balance of US$102.7 million (Rp1.58 trillion), marking a 30% increase compared to 2022.
Krakatau Steel faced challenges, including the inoperability of Hot Strip Mill 1 (HSM#1),which produces the primary product HRC, due to equipment damage and the impact of corporate divestment actions on performance.
At present Efforts are underway to maintain performance during the recovery process of the HSM#1 plant. The repair of HSM#1 facilities is expected to be completed in 2024, with the first production of Hot Rolled Coil (HRC) products post-repair planned for the fourth quarter of 2024.
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