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Scrap iron emitter, PT Optima Prima Metal Sinergi Tbk (OPMS), recently purchased a used ship weighing 4,209 tons to meet the company's raw material needs. This purchase utilized part of the proceeds from the company's initial public offering (IPO) with a transaction value of approximately Rp 7.35 billion.

The Secretary of PT Optima Prima Metal Sinergi Tbk, Rubbyanto Handaja, stated that the purchased used ship originated from a national shipping company in Surabaya. The selection of the ship was not done arbitrarily. According to Rubbyanto, OPMS had rigorously screened various lists of potential used ships before making the purchase.

"After passing the selection, the company decided to survey and conduct due diligence on the ship, both physically and legally," Rubbyanto explained to Kontan.co.id on Thursday (5/11). According to the company's estimation, the process of cutting the used ship will take approximately 3 months. From this cutting process, OPMS will obtain scrap iron to be sold to the company's customers. However, the company admits that it cannot yet estimate the tonnage of scrap iron that can be produced from cutting the ship.

In addition to selling scrap iron, OPMS will also utilize spare parts from the ship and non-ferrous materials resulting from the cutting process. The plan is to sell the spare parts separated from the cutting process to shipping companies, while the non-ferrous materials will be sold to smelting factories as raw materials.

Based on previous reports from Kontan.co.id, this year OPMS is indeed diversifying its products by selling ship spare parts and non-ferrous materials as a business strategy amidst the challenging situation of the COVID-19 pandemic.

In the future, OPMS is still open to the option of purchasing additional used ships to increase raw material stocks in the near term. However, the company has not specified the criteria for the size or weight of the ships to be purchased or the funds allocated for this purchasing plan."If possible, by the end of this year, the company plans to buy one unit (used ship), provided that the ship meets the projections and passes due diligence," said Rubbyanto.

So far, OPMS has not disclosed any production targets or performance targets to be aimed for until the end of the year. However, OPMS asserts that it will strive to ensure that the company's profit performance this year does not turn negative.

According to the company's financial statements, OPMS's net sales experienced a 78.57% year-on-year decrease, dropping from Rp 46.75 billion in the first semester of 2019 to Rp 10.01 billion in the first semester of 2020. Correspondingly, the company's net profit also shrank by 61.68% year-on-year to Rp 1.07 billion in the first half of this year. Previously, the company's net profit reached Rp 2.79 billion in the same period last year.

Source : Kontan.co.id