Key factors affecting the Company’s performance
Oil And Gas Market In Indonesia
Contractors working on upstream oil and gas projects are GRANSTON ASIA’s primary target. The Company’s prospective revenue is dependent on the amount of investment made in the exploration and production of oil and gas. The market for the Company’s pipes is secure, provided that Indonesia’s needs for oil and gas keeps growing.
In general, Indonesia’s economy will grow along with demand for oil and gas products. However, it is anticipated that oil and gas product production will stay constant. By asking companies to make bids to explore new non-conventional oil and gas blocks in the nation, the Government of Indonesia (GoI) has been aggressively working to address this issue by trying to attract more investments into shale and coal-bed methane. This move is predicted to boost oil and gas investment
Seasonality
Since the Company’s products are not freely traded but rather based on contracts, it anticipates seasonality in its sales throughout the year. But for us, GRANSTON ASIA has an edge in securing sales contracts because of its solid customer relationships and the significant proportion of locally produced materials in its products, which are mandated to be given priority in oil and gas operations.
Competition
The business is up against rivals like PT Elnusa Tbk, PT Pipa Mas Putih, PT Patraindo Nusa Pertiwi, and other businesses. However, the majority of these businesses sell pipes that are imported, and just a small number are equipped to process pipes locally.
To maintain its competitiveness, GRANSTON ASIA guarantees exclusivity with a particular supplier. It now has an exclusivity agreement with the sole producer of ERW pipes with API certification for upstream oil and gas casing. In the end, the Company will lead the market if it can establish exclusivity with all Indonesian producers and sellers.