KONTAN.CO.ID - JAKARTA. PT ESSA Industries Indonesia Tbk (ESSA), a company operating in the energy and chemical sectors, including an ammonia plant, reported a 16% decrease in revenue to US$ 73.8 million in the first quarter of 2024.

Meanwhile, ESSA's EBITDA was recorded to have increased by 41% year-on-year (YoY), reaching US$ 31.5 million. 

Despite the company's declining revenue, after deducting taxes and other expenses, ESSA's net profit soared by 227.96% to US$ 10.21 million, compared to the same period in 2023, which was US$ 3.11 million.

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“Although ESSA's realized ammonia price fell by 51% YoY to an average of US$ 344/MT in the first quarter of 2024, increased production volume and reduced costs contributed to the increase in EBITDA,” ESSA management revealed in a written statement received by Kontan on Tuesday (23/04).

ESSA also noted that the decline in ammonia prices, triggered by geopolitical issues in the Middle East and the Red Sea region in early 2024, which reached its lowest point in March 2024, has now shown an upward trend.

“ESSA estimates that ammonia prices will remain at levels similar to 2023. Meanwhile, LPG prices are showing a strong increase amid oil production cuts by OPEC+ member countries,” the company wrote. 

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Issuers TP Rachmat and Boy Thohir also stated that they will always reaffirm their commitment to manufacturing excellence, environmental sustainability, and adaptation to the continuously evolving industry dynamics. 

“With an unwavering focus on innovation and growth, ESSA continues to explore new opportunities that align with its competency advantages,” it concluded.