Saratoga Posts IDR 49.8 Trillion of NAV in Q3-2023, Supported by Robust Cash Flow
Jakarta, October 30, 2023 – PT Saratoga Investama Sedaya Tbk. (Saratoga, ticker code: SRTG) has successfully maintained the stability of the company’s performance amidst market fluctuations as well as the dynamic domestic and global economic conditions. As of the third quarter of 2023 (Q3-2023), Saratoga booked IDR 2.9 trillion of cash flow from dividends, up 35 percent compared to the same period last year. Saratoga’s Net Asset Value (NAV) in Q3-2023 reached IDR 49.8 trillion.
Saratoga President Director Michael William P. Soeryadjaya stated that the dynamic global economy had impacted multiple business sectors across the globe, including Indonesia. Furthermore, energy and commodity prices continue to fluctuate with global inflation and interest rates remaining high. In response, Saratoga has implemented its investment strategy in a more prudent and disciplined manner, prioritizing strong cash flow management.
“We remain focused on increasing the value of Saratoga’s existing portfolio companies. We are certain that the new business lines being developed within our portfolio companies will continue to strengthen Saratoga’s investment fundamentals,” Michael said in an official statement in Jakarta, (30/10).
Among its strategic investments, Saratoga supports the business fortification of PT Merdeka Battery Materials Tbk. (MBMA), a subsidiary of MDKA that focuses on the electric vehicle battery supply chain. To further cement its position in the battery supply chain, MBMA has signed an agreement with GEM Co., Ltd. (GEM) to build a high-pressure acid leach (HPAL) processing plant with a production capacity of 30,000 tons of nickel in mixed hydroxide precipitate (MHP) annually.
The HPAL plant will be built in the Indonesia Morowali Industrial Park (IMIP) and operated under PT ESG New Energy Material – a joint venture between MDKA and GEM – with an operational target of late 2024 for phase 1 and mid-2025 for phase 2. The plant will also purchase and process laterite nickel ore from MBMA’s Sulawesi Cahaya Mineral (SCM) Mine under a 20-year supply agreement.
GEM is a global leader in renewable energy and waste recycling. It is listed on the Shenzhen Stock Exchange (ticker code: 002340) and the SIX Swiss Exchange (ticker code: GEM) with a current market capitalization of approximately USD 4.4 billion.
“Additionally, Saratoga will continue to optimize every investment opportunity across strategic sectors that have a major impact on the sustainability of the national economy. These sectors include healthcare, consumer products, digital infrastructure, and renewable energy sectors,” Michael added.
PT Saratoga Investama Sedaya Tbk. Investment Director Devin Wirawan explained that Saratoga’s performance had also been supported by optimal operational efficiency, as reflected in the low cost and debt ratio. As of Q3-2023, the annualized operating costs to NAV ratio stood at 0.5 percent, and the loan ratio was 0.3 percent, compared to 0.3 percent and 0.9 percent, respectively, in the same period last year.
“During this period, we have also successfully reduced our interest costs by 52 percent year-on-year (yoy) due to a decrease in net debt. Currently, Saratoga’s net debt is IDR 166 billion, down 72 % yoy from IDR 588 billion,” Devin explained.
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.