Jakarta (ANTARA) - State-owned cement maker PT Semen Indonesia (Persero) Tbk (SIG) recorded a net profit of Rp829 billion in the first half of 2022, an increase of 4.4 percent from Rp794 billion in the year-ago period.

SIG's Corporate Secretary Vita Mahreyni said the company managed to record a good performance in the first half (January–June) amid a hyper-competitive cement market and rising fuel and energy costs.

"The positive performance was achieved by SIG in the midst of various tough challenges this year. And despite the fact that national cement demand experienced a contraction, SIG still managed to increase revenue from the domestic market by 1.8 percent," she informed in a statement received here on Wednesday.

Demand in the domestic cement market experienced a decline throughout the first half of 2022 due to the impact of the Eid holiday after a two-year pause during the pandemic, she said.

In addition, there was a shift in public spending priorities toward vacations and other consumption domains from property and renovations.

In the midst of these tough challenges, the issuer with the stock code SMGR also took strategic steps to maintain a positive performance.

The company controlled the cost of revenue, including by securing the supply of coal at the Domestic Market Obligation (DMO) price, as well as improving efficiency in operating and financial expenses.

These efforts helped SIG maintain an EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rp3.53 trillion, with the EBITDA margin increasing by 0.4 percent to 22.3 percent.

The company's net profit margin also increased by 0.3 percent from the previous year to reach 5.2 percent.

SIG proved its resilience not only through business achievements, but also through sustainable operations, which are a part of the company's push for competitiveness.

"This was done through various programs to support carbon emission reduction and sustainable development, as well as achieving Green Label certificates for the company's products," Mahreyni informed.

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Translator: Citro Atmoko, Fardah
Editor: Sri Haryati
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