Pelindo III
Global Bond 1st Issuance Date : 1 October 2014 Amount : USD 500 million Tenor : 10 Years
Coupon : 4.875%
2nd Issuance Date : 2 May 2018
Amount : USD 500 million Tenor : 5 Years
Coupon : 4.5%
Shareholder structure As of December, 31st 2018 Government of
Republik Indonesia 100%
Corporate & Bond Ratings As of December, 31st 2018 Moody’s : Baa3
Stable Outlook Fitch : BBB-
Stable Outlook S&P : BB+
Stable Outlook
Investor Relations &
Corporate Governance Pelindo III - Indonesia Ph: +62 31 3298631 - 37 Fax: +62 31 3295204 Email:
[email protected] www.pelindo.co.id
@pelindo3 pelindo3
@pelindo3 Pelindo III
Investor Memo
Financial Year 2018
Pelindo III focused on improving company performance.
April , 31st 2019
2018 was a year full of uncertainty, but Pelindo III was able to show an increase in operational and financial performance compared to the previous year.
The flow of goods in tons has decreased 8% compared to 2017 from 79.4 million tons to 72.9 million tons. The decrease was caused by a decrease in loading and unloading of production iron, concrete iron, cement piles, coral, asphalt, dry bulk and fertilizer at the Port of Tanjung Perak, Port of Kotabaru, Port of Tanjung Wangi and Port of Celukan Bawang. Besides that the damage of equipment (crane) on one wharft of the Ports of Gresik has led to the shifting of handling barges to TUKS Maspion.
The operational performance of Pelindo III in 2018 shows an increase compared to 2017. The flow of ships in unit increases by 2% from 66,547 units to 68,153 units.
While the increase in the flow of ships in GT increased by 10% from 248.8 million GT to 274.7 million GT. This increase in flow of ships was affected by increased ship visits at Port of Tanjung Perak, Port of Tanjung Emas, Port of Tanjung Intan, Port of Trisakti Banjarmasin, Port of Lembar and Port of Tenau Kupang.
The increase in the size of GT of container ships, non-oil bulk vessels and cruise ships visiting the Pelindo III region is a major factor in the increase in flow of ships in 2018.
Operational Performance
2017 2018
Ship Traffic (Unit)
in units
2%
68.153 66.547
2017 2018
Ship Traffic (GT)
in million
10%
274.67 248.83
2017 2018
in million
Goods (Ton)
79.43 72.88
(8%)
2017 2018
in million
Container (TEUs)
4.92 5.33
8%
2017 2018
in million
Passenger (Person)
2.96 3.09
4%
2017 2018
in thousand
Animal (Head)
133 142
7%
Meanwhile, container flows increased by 8% year on year from 4.91 million TEUs to 5.33 million TEUs. This is due to changes in transport patterns using containers, especially for food for the area of South Kalimantan and Central Kalimantan. The increase in containers was also caused by an increase in the need for goods for the project and logistical needs at the Port of Tenau Kupang, Port of Waingapu and Port of Lembar.
While for Port of Tanjung Perak the increase in containers is caused by the addition of 2 new customers (Emirate Shipping Line and Mariana Express) at PT Terminal Petikemas Surabaya and an increase in container ship visits to the pendulum route at Teluk Lamong Terminal.
The increase in operational performance was also seen in the flow of passengers and flow of animals, carrying an increase in flow of passenger by 4% and flow of animal by 7%. An increase in the flow of
passengers from 2.96 million people to 3.09 million people due to the increase in the number of GT cruises coming in the Pelindo III work area, especially Port of Benaoa. While the increase in flow of animal from 133 thousand to 142 thousand was caused by an increase in animal imports, especially cattle from Australia through the Port of Tanjung Intan and an increase in meat requirements at Port of Trisakti Banjarmasin, Port of Bumiharjo, Port of Tenau Kupang and Port of Lembar.
Investor Memo
Financial Performance
2018 is a challenging year for Pelindo III in achieving its financial performance targets. The company's revenue in 2018 was recorded at Rp. 10,175 trillion or an increase of 15% from 2017. The revenue from container terminal services was recorded at Rp. 6,026 trillion or 59.23% of total revenue while being the largest contributor to total revenue in 2018. The second largest portion of revenue came from ship service revenues amounted to Rp. 1,494 trillion or 14.69% of total revenue.
2017 2018
Revenue
in trillion IDR
15%
10.175 8.849
2017 2018
in trillion IDR
Expenses
17%
6.879 5.883
2017 2018
in trillion IDR
EBITDA
17%
4.551 3.898
2017 2018
in billion IDR
Total Assets
18.5%
30.506 25.751
2017 2018
in billion IDR
Total Equity
5.8%
10.355 9.365
2017 2018
in trillion IDR
Net Profit
(27%)
1.385 1.905
Investor Memo
This project has been started since April 18th, 2018 with a contract value of
Rp. 400 billion and it is expected could be completed in April 2020. Until the end of the year the progress of the additional container yard physical development reached 51.31% .
Additional CY of Terminal Teluk lamong
Started since March 9, 2018 Teluk Lamong Terminal Over Fly Project has a contract value of Rp. 1.3 trillion and it is expected could be completed in March 2020. Until the end of the year the progress of the fly over physical development reached 30%.
Fly Over of Terminal Teluk Lamong
In 2018 the cost efficiency remained the main target in the management of the company, but the expenses continued to increase by 17% compared to 2017 from Rp. 5.883 trillion to Rp. 6,879 trillion. The biggest
contributor to the increase was an increase in general expenses, business partners' cooperation expenses and maintenance, depreciation and amortization expenses. This caused Pelindo III earn net profit as much as Rp. 1.385 trillion or decrease 27% compare to 2017 in the amount of Rp. 1.905 trillion. The decline in net income in 2018 was due to the weakening of the Rupiah exchange rate to US Dollar, causing the value of the company's global bond debt to experience a sharp increase. The foreign exchange loss in 2018 was recorded at Rp. 792 billion, but this is only an accounting treatment, there is no money coming out of the company.
To avoid similar events in 2018, Pelindo III in 2019 has taken preventive action by hedging the debt liabilities in USD. The company hopes that with the hedging policy in 2019, we can minimize foreign exchange losses and is expected no to be as large as in 2018.
Capital Expenditure
Investment absorption in 2018 was reached at Rp. 3,476 trillion or 29% of the 2018 budget of Rp. 12,065 trillion, but the figure has increased by 41% compared to 2017 number of Rp. 2,455 trillion. The largest absorption of capex is in the Port Facility of Rp. 1,650 trillion or 47% of total capex absorption in 2018. Furthermore, in 2018, 77 investment programs have been completed out of 84 budgeted programs. Low absorption of capex in 2018 compared to the stipulated budget due to the related licensing process that cannot be completed in accordance with a predetermined time target.
The following is a highlight of several Pelindo III investment programs in 2018
Investor Memo
Construction of cruise and container wharf of the Terminal Gilimas has been started since March 20th, 2018 with a contract value of Rp. 270 billion and it is expected could be completed in April 2019. Until the end of the year the progress of the wharf construction physical development reached 71.11% .
Cruise and Container Wharf of the Terminal Gilimas
The construction has been started since May 9th, 2018 with a contract value of Rp. 500 billion and it is expected could be completed in December 2019. Until the end of the year the progress of the Pelindo Place construction physical development reached 25.01% .
Pelindo Place
Recent Updates
In 2018 the composition of the Pelindo III directors was complete with the joining of a new director in charge of Transformation and Business Development. With this new composition the Ministry of SOE as shareholders hopes that the performance of Pelindo III will increase by prioritizing synergy with other SOE’s. Pelindo III has begun to build synergies with Pertamina, PT PGN and PT PLN to optimize services to customers.
In accordance with Bank Indonesia regulations number 17/3 / PBI / 2015 dated 31 March 2015 concerning the Obligation to Use Rupiah, it was stated that all transactions that occurred in Indonesia were required to use Rupiah. This also applies to Pelindo III where foreign vessels coming to Pelindo III area make payments using Rupiah even though the tariff is in US dollars. Related to this, Pelindo III is requesting an exception to Bank Indonesia so that it can be allowed to directly receive revenues in the form of US dollars. With the existence of revenues in the form of US dollars, it can reduce foreign exchange losses in addition to the hedging policies carried out for 2019.
Regarding the issue of trade war between the United States and China, in general it does not affect the performance of Pelindo III. As is known, the composition of Pelindo III container flows is 60% domestic and 40% international. Besides that, the ports managed by Pelindo III are mostly destination ports so that trade wars that occur do not significantly affect the company's performance.
Investor Memo
Disclaimer
This document containts certain financial information and result of operation, and may also contain certain projections, plans, strategies, and objectives of Pelindo III, that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements are subject to risks and uncertainties that may cause actual events and Pelindo III future results to be materially different than expected or indicated by such statements. No assurance can be given that the results anticipated by Pelindo III, or indicated by any such forward looking statements will be achieved.
The financial information provided herein is based on Pelindo III consolidated financial statements in accordance with Indonesian Financial Accounting Standards.
