Saratoga Booked IDR 1.5 trillion Dividend in Semester I-2023
Jakarta, July 28, 2023 – PT Saratoga Investama Sedaya Tbk. (ticker code: SRTG) has successfully strengthened its cash flow as a result of optimal investment strategy. Saratoga recorded dividend income of IDR 1.5 trillion in the first semester of 2023, up nine percent as compared to the same period last year. Saratoga’s portfolio companies have continued to record positive operational performance amid a dynamic and challenging capital market condition. This achievement is also an indication of Saratoga’s solid investment strategy.
As an investment company, Saratoga recorded a net asset value (NAV) of IDR 47.5 trillion in the first half of 2023. Supported by strong cash flow, Saratoga was able to distribute cash dividends of IDR 1 trillion for fiscal year 2022, translating to approximately IDR 75 per share and a dividend yield of 4.4 percent. The cash dividend marked a 28 percent increase from the previous year’s dividend, which was IDR 810 billion, or IDR 60 per share.
Saratoga Investment Director Devin Wirawan stated that the increase in dividend income from portfolio companies further strengthened Saratoga’s performance in terms of stable and growing cash flow. “The company’s disciplined implementation of investment strategies drives the value accretion of our overall portfolio. We consistently optimize every new investment opportunity as a strategic step to maintain long-term growth in portfolio value,” said Devin through an official statement in Jakarta, (28/7).
According to Devin, as a country with steadily growing population, abundant natural resources, and positive economic growth, Indonesia continues to offer promising investment prospects. Therefore, Saratoga will continue to strengthen its investment in sectors that are strategically important in driving Indonesia’s economic growth going forward.
“The company is committed to enhancing its existing investment portfolio, especially in digital infrastructure and renewable energy, and diversifying into other sectors including healthcare and consumer product through collaboration with strategic partners. We believe these initiatives will provide positive and sustainable results,” he added.
Saratoga Finance Director Lany D. Wong revealed that throughout the first semester of 2023, Saratoga was able to maintain healthy cost and debt ratios with operational costs at 0.5 percent of NAV and loan to value of 1.1 percent. “In addition to strong cash flow, this achievement was also attributed to Saratoga’s prudent approach in operations and capital management.” she added.
In the midst of high interest rate climate, Saratoga successfully reduced interest costs in the first half of 2023 by 53 percent as compared to first half of 2022, through debt reduction initiative. The company’s net debt position in this period was IDR 507 billion, against IDR 688 billion at the end of 2022.
Lany explained that during this period, share prices in a number of Saratoga’s listed portfolios experienced a decline, including PT Adaro Energy Indonesia Tbk. (ticker code: ADRO) and PT Merdeka Copper Gold Tbk. (ticker code: MDKA). This impacted the NAV value and the company’s profit/loss position. However, Lany emphasized that the recorded losses in the first half of 2023 were mostly unrealized and were only recorded on the profit/loss statement.
“As an investment company, Saratoga always adjusts the value of each portfolio on a mark to market basis. With the company’s strong liquidity, we are optimistic that we would be able to take advantage of new investment opportunities to create value for shareholders through growth in NAV and dividend distribution,” Lany explained.
The value of Saratoga’s listed portfolios are affected by various factors including rising inflation, interest rates, and commodity prices movements. Saratoga always prepares a comprehensive and measured strategy to adapt to any challenging situations.
Investment Company Corporation Action
PT Merdeka Battery Materials Tbk. (ticker code: MBMA)
- In June 2023, MBMA acquired a 60 percent stake in PT Huaneng Metal Industry (HNMI), a high-grade nickel matte (HGNM) conversion facility located in Indonesia Morowali Industrial Park (IMIP). HNMI processes low grade nickel matte (LGNM) produced by the RKEF smelter and produces HGNM products containing more than 70 percent nickel.
- This acquisition will strengthen MBMA’s cash flow and generate additional profit margins from the sale of nickel matte, which is the main raw material for battery precursors and class 1 nickel products (99.8 percent nickel content).
Bersama Digital Infrastructure Asia Pte. Ltd. (BDIA)
- In May 2023, BDIA launched Bersama Digital Data Centers (BDDC), an in-town data center platform that serves as a hub of interconnectivity, equipped with an integrated digital ecosystem.
- As a data center platform, BDDC already has two in-town data centers located in Daan Mogot and MT Haryono, with a total capacity of more than 60MW.
- BDDC has a data hall area of 20,000 square meters with a potential capacity of over 9,000 racks.
About PT Saratoga Investama Sedaya Tbk
Founded in 1997, PT Saratoga Investama Sedaya Tbk (Saratoga, ticker code: SRTG) is a leading active investment company in Indonesia. Saratoga plays an active role in managing investee companies and investing in innovative companies with high growth potential across Southeast Asia. The company has a strong track record of identifying, developing, and creating value from the companies in which we invest.
Our investment strategy has been refined to adapt to the changing times, evolving from our initial focus on natural resources, infrastructure, and consumer sectors to our participation in other new emerging sectors, including the rapidly expanding digital technology sector that has grown to become a major main driver of Indonesia’s sustainable economic growth.
Saratoga’s vision is to continue to be a leading world-class active investment company and the partner of choice for both local and foreign investors looking to participate in the dynamics of Indonesia’s economic growth.
For more information, please visit: www.saratoga-investama.com.