Ratings of PT Polytama Propindo affirms at “idBBB+”

Transcription

1. Press Release June 14 , 2021 PT Polytama Propindo Analysts: Aryo Perbongso / Umar Hareddy Phone/Fax/E-mail: (62-21) 509 68469/509 68468 / aryo.perbongso@pefindo.co.id / umar.hareddy@pefindo.co.id CREDIT PROFILE Corporate Rating Rated Issues Bond I/2020 Sukuk I/2020 FINANCIAL HIGHLIGHTS idBBB+/Stable idBBB+ idBBB+(sy) Rating Period June 10, 2021 – June 1, 2022 Rating History JUN 2020 idBBB+/Stable As of/for the year ended Total adjusted assets [USD mn] Total adjusted debt [USD mn] Total adjusted equity [USD mn] Total sales [USD mn] EBITDA [USD mn] Net income after MI [USD mn] EBITDA margin [%] Adjusted debt/EBITDA [X] Adjusted debt/adjusted equity [X] FFO/adjusted debt [%] EBITDA/IFCCI [X] USD exchange rate [IDR/USD] Mar-2021 (Unaudited) 198.7 92.4 62.2 87.1 20.1 10.5 23.1 *1.1 1.5 *58.4 7.0 14,493 Dec-2020 (Audited) 197.3 104.2 51.7 240.1 18.5 0.2 7.7 5.6 2.0 6.3 1.4 14,105 Dec-2019 (Audited) 177.8 112.5 36.6 242.7 19.3 26.1 8.0 5.8 3.1 4.2 2.9 13,901 Dec-2018 (Audited) 203.3 166.2 9.4 245.9 18.5 (11.5) 7.5 9.0 17.7 0.1 3.2 14,481 FFO = EBITDA – IFCCI + interest income – current tax expense EBITDA = operating profit + depreciation expense + amortization expense IFCCI = gross interest expense + other financial charges + capitalized interest; (FX loss not included) MI = minority interest *Annualized The above ratios have been computed based on information from the company and published accounts. Where applicable, some items have been reclassified according to PEFINDO’s definitions. Ratings of PT Polytama Propindo affirms at “idBBB+” PEFINDO has affirmed ratings of PT Polytama Propindo (PLTM) and its Bond I Year 2020 at “idBBB+”. PEFINDO has also affirmed its “idBBB+(sy)” rating to PLTM’s Sukuk I Year 2020. The outlook for the corporate rating is “stable”. PLTM plans to repay its maturing bond I/2020 serie A and sukuk I/2020 serie A with total amount around USD19.4 million using internal cash. As of March 31, 2021, it had cash and cash equivalent of USD22 million. An obligor rated idBBB has an adequate capacity to meet its long-term financial commitments relative to that of other Indonesian obligors. However, adverse economic conditions or changing circumstances are more likely to weaken its capacity to meet its financial commitments. The plus (+) sign indicates that the rating is relatively strong within its category. Suffix (sy) indicates the rating mandates Islamic principles compliant. The corporate rating reflects PLTM’s satisfactory market position in the domestic petrochemical industry, strong vertical integration, and relatively low receivable days compared to peers. The rating is constrained by its aggressive financial leverage, weak financial flexibility, and exposure to commodity price volatility. PEFINDO may raise the rating if PLTM improves its market position by successfully executing its capital expenditure (capex) plan, and at the same time strengthens its financial profile, especially its capital structure and cashflow protection measures on a sustained basis. The rating could be lower if PEFINDO view PLTM’s financial profile persistently deteriorates due to lower than expected profitability margins, resulted from weaker demand for petrochemical products, higher than expected price of feedstock and expansion capacity of petrochemical industry. The rating could also be lowered if it incurs higher debt than projected to finance expansion and working capital requirements, resulting in more aggressive financial profile. Our rating has not incorporated the capex plan for construction of its second polypropylene plant as its scheme is not disclosed yet. PLTM is a petrochemical company founded in 1993. It owns a polypropylene plant in Balongan in West Java province, located near Pertamina’s refinery, with an annual capacity of 300,000 metric tons. PLTM uses the brand name Masplene for its polypropylene products. As of March 31, 2021, its shareholders were PT Tuban Petrochemical Industries (80%) and Pasio Investment B.V. (20%). PT Tuban Petrochemical Industries is a subsidiary of PT Pertamina (Persero) (51%), the Ministry of Finance (47%), and PT Pertamina Pedeve Indonesia (2%). http://www.pefindo.com June 2021
2. Press Release June 14 , 2021 DISCLAIMER The rating contained in this report or publication is the opinion of PT Pemeringkat Efek Indonesia (PEFINDO) given based on the rating result on the date the rating was made. The rating is a forward-looking opinion regarding the rated party’s capability to meet its financial obligations fully and on time, based on assumptions made at the time of rating. The rating is not a recommendation for investors to make investment decisions (whether the decision is to buy, sell, or hold any debt securities based on or related to the rating or other investment decisions) and/or an opinion on the fairness value of debt securities and/or the value of the entity assigned a rating by PEFINDO. All the data and information needed in the rating process are obtained from the party requesting the rating, which are considered reliable in conveying the accuracy and correctness of the data and information, as well as from other sources deemed reliable. PEFINDO does not conduct audits, due diligence, or independent verifications of every information and data received and used as basis in the rating process. PEFINDO does not take any responsibility for the truth, completeness, timeliness, and accuracy of the information and data referred to. The accuracy and correctness of the information and data are fully the responsibility of the parties providing them. PEFINDO and every of its member of the Board of Directors, Commissioners, Shareholders and Employees are not responsible to any party for losses, costs and expenses suffered or that arise as a result of the use of the contents and/or information in this rating report or publication, either directly or indirectly. PEFINDO generally receives fees for its rating services from parties who request the ratings, and PEFINDO discloses its rating fees prior to the rating assignment. PEFINDO has a commitment in the form of policies and procedures to maintain objectivity, integrity, and independence in the rating process. PEFINDO also has a “Code of Conduct” to avoid conflicts of interest in the rating process. Ratings may change in the future due to events that were not anticipated at the time they were first assigned. PEFINDO has the right to withdraw ratings if the data and information received are determined to be inadequate and/or the rated company does not fulfill its obligations to PEFINDO. For ratings that received approval for publication from the rated party, PEFINDO has the right to publish the ratings and analysis in its reports or publication, and publish the results of the review of the published ratings, both periodically and specifically in case there are material facts or important events that could affect the previous ratings. Reproduction of the contents of this publication, in full or in part, requires written approval from PEFINDO. PEFINDO is not responsible for publications by other parties of contents related to the ratings given by PEFINDO. http://www.pefindo.com June 2021