Oil Prices Fluctuate, Not Too Affected For AKR Corporindo (AKRA)

The decline in oil prices by 2.41% compared to the previous close is considered to be better than the beginning of last month which was still at US $ 35.79 per barrel. Now, the price of West Texas Intermediate oil for December delivery is at the level of US $ 40.13 per barrel.

In the end, the prospect of future stock movements will also grow compared to the current position. Moreover, in the next year, the world oil price will still fluctuate, but the trend will be stronger and better than 2020. This will boost the performance and prospects of oil issuers

Meanwhile, on September 14, 2020, it was written, PT AKR Corporindo Tbk is one of the oil companies that is actually minimally affected by oil price fluctuations. Erik assessed that AKRA as a fuel oil distributor has a pass-through method which is forwarded to buyers with a certain formula.

AKRA benefited from the increase in allocation for Fatty Acid Methyl Ester (FAME) this year, from 498,683 kilo liters to 725,000 kilo liters (kl). Furthermore, this figure also increased AKRA's biodiesel capacity from 1.66 million kl to 2.42 million kl. Ultimately, this capacity increase has the potential to generate additional revenue and future growth opportunities for AKRA outside of the oil business.

AKRA will also receive a positive catalyst from the Java Integrated Industrial and Port Estate (JIIPE) business. This was disclosed by analyst Samuel Sekuritas Ilham Akbar in his research on November 2, 2020. According to him, JIIPE has managed to score sales of 17 ha to 9M20, twice as high as sales of 8 ha in 2019.

AKRA's advantage is that it has a lot of business diversification. So that AKRA from the income side will tend to be more stable and less dependent on the oil business, which in terms of prices will still tend to be volatile. This can be seen from the performance of AKRA, which even though revenue has decreased, it can still record profit growth.

East Java Industrial Estate JIIPE is the largest industrial estate in East Java as well as the first integrated industrial estate in Indonesia which has been equipped with ports and docks for yachts and housing with an environmentally friendly industrial area, named GEM City, with various exclusive facilities, such as golf courses and shopping centers within the industrial estate.