JAKARTA – The performance of PT ESSA Industries Indonesia Tbk (ESSA) declined in the third quarter (Q3) of 2023 compared to the same period in 2022. It was caused by price decline and termination of regulars of ammonia plant in Q1 2023.

Shinta D.U. Siringoringo, Corporate Secretary of ESSA, said that the revenue and net profit of the company both dropped 58% and 91% in Q3 2023. “The revenue was down to USD 233 million from USD 557 million, while the net profit decreased from USD 105 million to only USD 10 million,” she revealed in the information disclosure quoted Wednesday (18/10).

According to Siringoringo, the realisation price of ammonia shrank 58% to an average of USD 378/metric tons (MT) in Q3 2023 compared to the same period in 2022. The decline resulted from price surge last year.

“Global ammonia price seemed to arrive at its lowest point in May 2023, before continuing the solid increasing trend,” Siringoringo mentioned.

Further, it was said that ammonia has started being traded at its normal price level since September 2023. Globally, supplies are still tight amidst the increasing demands for commodities in East Asia and China.

According to Siringoringo, ammonia price will remain at high level in Q3 2023 due to the increasing uncertainty in the world. (LK/ZH)