JAKARTA - PT Sunindo Pratama Tbk (SUNI), an OCTG pipeline producer focused on the oil and gas industry, recorded a 38.6% year-on-year (yoy) increase in net profit to reach IDR 100.9 billion at the end of 2023.

The increase in net profit was supported by rapidly growing revenue, up 41.4% yoy to IDR762.4 billion. The robust revenue was in line with OCTG sales volume that grew 10.3% yoy to 15.3 thousand tons, and casing sales that more than tripled (304.7% yoy) to 11.7 thousand tons.

According to Freddy Soejandy, Chief Financial Officer (CFO) of SUNI, almost all of the company's sales segments came from the contribution of OCTG sales. "This year, the percentage of OCTG is 91%; last year it was 80%. Meanwhile, wellhead is 6.9%; last year it was 12%," he explained at SUNI's FY2023 Performance Press Conference today (1/4).

Equipped with good performance in 2023, SUNI is optimistic that it will record a 21% increase in revenue in 2024, projected to reach IDR923 billion. However, net profit is only targeted to increase by less than 10%, only reaching IDR 109-110 billion.

"The increase is not too high, because we are starting to have bank debt. Maybe some of the profit will be reduced for bank interest payments. So, net profit is estimated to increase by 8.4%," added Soejandy.

SUNI is known to be preparing to expand Plant 2 of PT Rainbow Tubulars Manufactue (RTM), its subsidiary that specializes in producing OCTG in Batam, to increase production capacity. "Our current production capacity, around 25-30 thousand tons, almost reaching the limit," Soejandy admitted.

Based on the presentation of the board of directors, SUNI has budgeted IDR 327 billion for capital expenditure (capex) in 2023, and is ready to disburse IDR 152.8 billion to RTM to increase OCTG production capacity this year.

"Last year, we only produced 15 thousand tons, due to a 2-month overhaul," said Willy Chandra, President Director of SUNI. "This year, we can reach 25,000 tons. If the production of large pipes, it can reach 30 thousand tons," he continued.

As the only OCTG pipe manufacturer in Indonesia, SUNI admits that there is still a lot of market potential in the future, especially triggered by the government's production target of 1 million BOPD by 2030.

"Data from SKK Migas, for 2024, there will be drilling of exploration and development wells around 1,040 wells, which is 22% higher than last year," continued Bambang Prihandono, Chief Operating Officer (COO) of SUNI. Last year,

Not only focusing on OCTG, to ensure the supply of wellhead and christmas tree, the company has formed a Joint Venture with Jiangsu Jinshi Machinery Group (JMP), under the name PT Petro Synergy Manufacturing (PSM), which will focus on increasing the TKDN of SUNI products. "We are targeting PSM to be ready to operate in Q4 this year, continued Prihandono. (ZH/LM)