Clean Energy Stocks Rise, Performance of Several Green Energy Companies Improves

The Indonesian government's strategic agenda in shifting to the use and utilization of New and Renewable Energy (NRE) has had a positive impact on clean energy issuers. This is reflected in the strong financial performance of several issuers in this industry throughout 2022.

According to IDX Channel, NRE issuer PT Arkora Hydro Tbk recorded impressive financial results in the first half of 2022. According to its financial report, ARKO achieved net revenue of Rp116.02 billion, a 36.06 percent year-on-year (YoY) increase.

Furthermore, the net profit of this issuer, with the stock code ARKO, soared by 69.59 percent YoY to Rp24.93 billion. Thus, ARKO outperformed other NRE issuers in terms of both net profit and net revenue.

The increase in ARKO's revenue and net profit stemmed from a significant increase in the issuer's revenue segments. Revenue from electricity sales increased by 19.25 percent to Rp32.29 billion.

Meanwhile, the most significant increase was in revenue from other services, which surged by 131.65 percent, although it only contributed Rp3.85 billion to revenue. On the other hand, construction services contributed Rp79.88 billion to revenue, with an increase of 41.29 percent.

Besides ARKO, PT Kencana Energi Lestari (KEEN) also recorded a significant year-on-year growth in net revenue and net profit. In the first half of 2022, KEEN's net revenue grew by 11.85 percent to USD 20.36 million, or approximately Rp302.36 billion (assuming an exchange rate of Rp14,848/USD). Its net profit also soared by 66.34 percent to USD 6.81 million, or Rp101.24 billion in the first half of 2022.

In contrast, the financial performance of PT Semacom Integrated Tbk (SEMA) and PT Sky Energy Indonesia Tbk (JSKY) contracted in the first half of this year. Both net revenue and net profit for both issuers declined year-on-year.