ESSA Industries Forecasts Strong Growth Amid Rising Ammonia Prices and New Projects
PT Essa Industries Indonesia Tbk (ESSA) anticipates significant revenue growth in 2026, driven by a 31% increase in average ammonia prices and the ongoing development of sustainable aviation fuel (SAF) and Blue Ammonia projects. The company's net income is projected to reach US$ 103 million this year, bolstered by geopolitical factors affecting gas supply.
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ESSA's revenue for 2026 is estimated at US$ 431 million, with net income expected around US$ 103 million, reflecting a potential EPS growth of 156%. The average ammonia price is projected at US$ 575 per ton, up 27.78% from previous estimates, due to supply disruptions affecting global LNG and ammonia markets.
The SAF project in Batang, slated for commissioning in Q1 2028, aims for a capacity of 200,000 MTPA, while the Blue Ammonia project is set to offer premium pricing. Risks include potential declines in ammonia prices, which might affect future earnings. The stock price target has been raised from 1,000 to 1,200 per share, indicating strong long-term prospects driven by production capacity expansion.
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