FINANCIAL ANALYSIS OF PT. CHANDRA ASRI PETROCHEMICAL TBK INDONESIA DUE TO OIL LOW PRICES

• Main Author: ONNY VHONNA (NIM 29114550), MOHAMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28999
• Institution: Institut Teknologi Bandung

As the largest and integrated petrochemical company in Indonesia, PT. Chandra Asri Petrochemical Indonesia with 8 units of its product portfolio (Polypropylene, Polyethylene, Ethylene, Styrene Monomer, Butadiene, Propylene, Py Gas and Mixed C4) has recorded excellent net revenue value in 2016 of USD 1,923.1 million, 40% higher compared to 2015 amounted USD 1,373.7 million. Because of this achievement , the Moody's investor service, a International bond finance research Institution who gave a financial rating, where in August 2017 had upgraded the company's rating of PT. Chandra Asri Petrokimia becomes Ba3 grade from B1 grade, which shows the company's finances in stable condition. In term of management system, the company has shown good performance, where there are no employee layoff, even the numbers of manpower are increased during this time. <br /> <br /> From the analysis ratio, found that PT. Chandra Asri Petrochemical managed to get through this economic crisis by obtaining a large net revenue, due to the high demand of domestic market which made the high sales volume even though the selling price of the product decreased, which was also accompanied by high production volume and the decrease of raw material price due to the decrease of oil price. These three factors are considered as the root causes of the business issues. <br /> <br /> Alternative business solutions offered in order to increase production capacity include 4 units of plant from product portfolio, Debottlenecking Polypropylene Plant Project, Polyethylene Plant Project, Revamping Ethylene Plant Project and Expansion of Butadiene Plant Project. The decision analysis process is performed by identifying and comparing the initial investment cost, operating cost and turnaround maintenance with benefit values of the four alternatives using Cost Benefit Analysis (CBA) method based on the assumption of sensitivity analysis, where all costs and benefits are have scenario with pessimistic condition, most likely and optimistic. Four alternatives have been made summaries and comparison with come across satisfy results to be continued by PT Company Chandra Asri Petrokimia in real movement. The final conclusions and recommendations of this study, the four offered alternatives have the value of Net Present Value (NPV) which is very feasible to be followed up immediately into the stage of project construction implementation.