SBI Reports Third Quarter Financial Performance Amid the Global Energy Crisis

Jakarta (29/10) – PT Solusi Bangun Indonesia Tbk (“SBI”) reports today its financial performance for the third quarter of 2021 as summarized in the below table:

Despite the restrictions applied to prevent Covid-19 spreading, construction activities take place more active in the second semester this year. Until the end of September 2021, domestic cement consumption grew 5.51% and exports grew 35.49% compared to the same period in 2020. 

Synergized with SIG, SBI also benefited from the consumption increase as cement and clinker total sales volume increased 12.95% compared to the same period last year.

However, the business is still quite heavy. Not yet recovered from the pandemic and market overcapacity, the cement industry is now also affected by the rising coal prices due to the energy crisis in several countries around the globe. Used as the main energy source in cement production, coal contributes about 30% to cement production costs according to the Indonesian Cement Association (ASI). In response to this, SBI strengthens synergy with SIG to take efficiency measures in coal usage. Along with other efficiency efforts, SBI maintained positive EBITDA and achieved a net profit of Rp459 billion for the nine months period. 

“Cement and other coal user industries like textile and papers are heavily suffering from limited coal supply and soaring price. Together with SIG, we are looking for ways to keep supplying the markets and supporting constructions needs for housing, building, and infrastructure projects”, says Aulia Mulki Oemar, President Director.

About PT Solusi Bangun Indonesia Tbk

PT Solusi Bangun Indonesia Tbk is  a public listed company where its major shares (83.52%) are owned by PT Semen Indonesia Industri Bangunan (SIIB) – a subsidiary of PT Semen Indonesia (Persero) Tbk known as SIG. SBI operates an integrated business of cement, ready-mixed concrete, aggregates and waste management and manages four major cement plants located in Narogong (West Java), Cilacap (Central Java), Tuban (East Java), and Lhoknga (Aceh), bringing total production capacity of 14.8 million tons per annum and employs more than 2.000 people.