SHARE holders of PT Garuda Indonesia Tbk (GIAA) still have to be patient to get dividends. This is because the profit earned must be used to pay debts.  Looking at Garuda’s financial statements, GIAA posted operating revenue of US$1.68 billion throughout 2022. This achievement increased 62.31% on an annual basis from US$1.04 billion in 2021.

Profit attributable to owners of the parent entity, aka GIAA’s net profit, reached US$3.73 billion. This value reversed from a loss of US$4.15 billion in 2021.

According tot Garuda Indonesia’s Director of Finance and Risk Management, Prasetio, explained that the net profit achievement was non-cash due to the reversal of debt so that later it would be recorded as equity.

“We can’t pay dividends because it’s non-cash. So, we cannot use the US$ 3.73 billion because it is only a book,” Prasetio said recently.

Indeed, the recovery of the performance of the state-owned issuer was supported by an injection of funds by the government. In 2022, GIAA received State Capital Participation (PMN) worth IDR7.5 trillion. The PMN funds were included in the rights issue proceeds via Limited Public Offering (PUT) II in December 2022. At that time, GIAA obtained IDR7.77 trillion.

Prasetio explained that GIAA’s capital expenditure (capex) will come from the PMN funds. Most of them are used for the restoration of grounded aircraft.

“For restoration, we are assisted by the government with a State Capital Participation (PMN) of IDR7.5 trillion, the capital expenditure comes from the PMN,” he concluded. [sources/photo special]