ESSA’s 1Q23 Results Lower due to Scheduled Maintenance Activity

INDUSTRY.co.id - Jakarta,  – PT Surya Esa Perkasa Tbk. (ESSA: IJ), a publicly listed company engaged in the Energy and Chemical sectors through its LPG (Liquefied Petroleum Gas) refinery and Ammonia plant reported revenue of USD 87.8 million, a decrease of 45% YoY, and EBITDA of USD 22.5 million, a decrease of 67% YoY in the first-quarter results for 2023 released today.

The lower earnings were primarily driven by lower commodity prices and a scheduled ammonia plant maintenance shutdown for 3 weeks. Ammonia plant is operating at optimal productivity and efficiency post successful completion of the maintenance activity.

Global Ammonia prices softened in 1Q23, particularly in March as global energy prices normalized while demand recovery remains gradual. Going forward, with China re-opening after Covid-19, demand improving in the fertilizer sector, and Europe continuing to remain under the strain of high gas prices, ESSA expects ammonia prices to normalize to healthier levels in the second half of the year.

Progressing on the Blue Ammonia Project, ESSA with support from JOGMEC (Japan Oil, Gas, and Metals National Corporation), Mitsubishi Corporation, Pertamina, and LAPI ITB has completed Phase 1 of the carbon capture and sequestration study. Phase 2 of the feasibility study is in progress.

This project will be a significant milestone for ESSA, as it aims to become the first company in Southeast Asia to produce Blue Ammonia in the coming years.