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Issuer Flash: PT Cikarang Listrindo Tbk - 9M 2026 Results

Issuer: Cikarang Listrindo | Document: Issuer Flash | Date: 2026-11-02 | Event: 9m 2026 Results

Report date: 2026-11-02 Event date: 2026-09-30 Event title: 9M 2026 Results

1. Flash Conclusion

Cikarang Listrindo's nine-month results support the existing view of a small private power credit with a resilient industrial customer base and low company-reported net leverage. Industrial revenue rose 7.0% year on year, offsetting weaker PLN sales, and the company reported net debt to EBITDA of 0.4x. The improvement in statutory operating profit was helped by a US$7.4m business-interruption insurance claim, so it should not be extrapolated as wholly recurring operating improvement.

Liquidity and investment discipline remain central to the credit case. At September-end, US$133.8m of cash and equivalents and US$211.0m of investments stood against US$343.7m of notes payable. The 50 MW gas engine was still being commissioned, while a larger possible plant expansion adds a longer-term funding question. Neither project benefit nor the effect of lower PLN deliveries on annual settlement is established by the results.

The Event date above is the financial period end, not a confirmed publication date. The statements and presentation were available on the company's website when checked on 2 November; an independent first public release date was not confirmed.

2. Results and Operating Developments

Unaudited consolidated net sales rose 3.7% to US$427.9m in 9M2026. Industrial customers accounted for US$388.7m, up from US$363.3m, while PLN revenue fell to US$39.2m from US$49.2m. The industrial franchise therefore more than offset the PLN revenue decline, although the mix does not establish that replacement demand produces the same incremental margin or contractual protection.

Operating profit rose to US$107.4m from US$85.9m and net profit to US$70.9m from US$57.3m. Other income included US$7.433m of business-interruption insurance proceeds, versus total other income of US$0.85m in the prior period. This payment is a material, non-recurring support to the reported profit comparison; removing the claim alone does not produce a fully normalized profit measure. Fuel expense declined modestly to US$210.6m from US$211.8m, despite higher revenue. The company reported an EBITDA margin of 37.2%, versus 36.2%, and a net debt-to-EBITDA ratio of 0.4x in both periods. Its EBITDA definition includes adjustments for non-cash items and non-recurring gains or losses; it is not a standardized cash-flow measure.

The nine-month statements also confirm receipt of the insurance claim that had been expected in the prior flash. The 50 MW engine is not yet a demonstrated operating benefit: the company said three of four engines had completed load testing, while the fourth awaited control-panel replacement and cooling-water flushing was under way before final testing and continuous operation. Construction was more than 99% complete and US$37.3m of the estimated US$44.0m project cost had been spent. The company describes the project as fully funded; this does not establish its realized reliability or fuel savings.

3. Credit Read-Through

The revenue mix reinforces the dedicated industrial-estate thesis in the existing issuer summary, but it does not eliminate geographic concentration, fuel-supply risk or sensitivity to industrial demand. The 9M financial statements describe monthly PLN invoices based on power delivered and an annual comparison between calculated and invoiced amounts, which can lead to payment due to either party. They do not show the amount, if any, of a 2026 year-end true-up. Lower PLN revenue therefore cannot automatically be classified as either permanently lost or fully recovered.

Cash and equivalents increased from US$124.0m at June-end to US$133.8m at September-end; investments increased from US$174.2m to US$211.0m. The investments comprised US$130.3m in time deposits and US$80.8m of financial assets, including US$77.5m in bonds and US$3.3m in mutual funds. The financial statements say that neither cash and equivalents nor investments were pledged as collateral for debt or other borrowings at September-end. They also say time deposits within investments are generally placed for three to twelve months. This improves visibility over pledging, but does not establish that every investment is immediately accessible at par or available to service any particular bond. The company's net-debt definition deducts cash and equivalents and time deposits placed for more than three months; its 0.4x ratio should be read on that basis rather than as a measure of unrestricted on-demand cash.

Nine-month operating cash flow was US$131.0m after finance-cost and income-tax payments. Purchases of property, plant and equipment plus advances for those purchases were US$50.6m, and cash dividends paid were US$45.2m. The resulting approximately US$35.2m difference is a simple cash-flow comparison, not reported free cash flow; it excludes other investing and financing movements, including treasury-share proceeds, investments and deposits. It indicates capacity to fund this period's spending, but does not prove the same coverage under fuel or demand stress. Dividend policy remains material to the cash-dependent net leverage buffer.

The investor presentation also outlines a possible expansion of the existing 109 MW MM2100 simple-cycle plant into a 346 MW combined-cycle plant, targeting commercial operation in the first half of 2030. The presentation describes ongoing preparation and an indicative cost of US$1.0m–1.2m per MW, but does not establish the final total budget. This is a plan, not a completed project or demonstrated contracted cash flow. Its final scope, approval, funding, customer commitments and effect on dividend capacity warrant scrutiny before it is credited as a cash-generating asset. The private company's utility role and PLN contract should not be confused with a government guarantee.

4. Key Numbers

Metric 9M2026 / September 2026 Comparison Credit reading
Net sales US$427.9m US$412.5m in 9M2025 Industrial growth offset weaker PLN sales.
Industrial / PLN revenue US$388.7m / US$39.2m US$363.3m / US$49.2m in 9M2025 Annual PLN settlement remains unquantified.
Operating profit / net profit US$107.4m / US$70.9m US$85.9m / US$57.3m in 9M2025 Operating profit includes the insurance claim.
Insurance claim income US$7.433m None in 9M2025 Receipt helps the period but is not recurring operating income.
Cash / investments US$133.8m / US$211.0m US$174.2m / US$135.1m at end-2025 Neither was pledged as debt collateral, but investment liquidity varies.
Notes payable US$343.7m US$343.3m at end-2025 Gross obligations remain material despite the low net ratio.
Operating cash flow US$131.0m US$123.3m in 9M2025 After paid finance costs and income tax.
Net debt / EBITDA 0.4x 0.4x in 9M2025 Company-defined and not independently recalculated.

5. What To Watch Next

Confirm sustained gas supply, the fourth engine's testing and actual commercial operation, and whether the engine improves reliability and fuel economics. Track industrial electricity demand and retention as well as PLN deliveries, the actual annual settlement and tariff pass-through. Examine deposit and investment maturity, accessibility and composition alongside dividends and capital expenditure. For the larger expansion, seek final cost, approval, contracted demand and funding disclosures. The bond offering circular, covenant details and current rating-agency reports were not reviewed for this flash.

6. Sources