Sunindo Pratama (SUNI) Defies Earnings Slump with Dividend Payout as Shareholders Back Expansion

JAKARTA, Investortrust.id — PT Sunindo Pratama (SUNI), a key player in the supply of Oil Country Tubular Goods (OCTG) for Indonesia’s energy sector, is betting on shareholder loyalty. Despite navigating a challenging fiscal year characterized by declining profits, the company’s Annual General Meeting of Shareholders (RUPST) officially greenlit a total dividend distribution of Rp 25 billion ($1.57 million).

Why It Matters: Balancing Returns and Retention

For investors, SUNI’s decision to pay dividends amidst a profit contraction is a clear statement of management’s confidence in the company’s underlying cash flow. By retaining nearly 87% of its 2025 earnings, the company is prioritizing liquidity to navigate ongoing industry volatility, particularly within the oil and gas pipe supply market. The move highlights a strategic effort to keep institutional and retail shareholders engaged while preserving capital for critical operational needs.

Director Freddy Soejandy addressed the mechanics of the payout during a virtual public expose on Monday, noting that the treasury stock from the company’s recent buyback program will effectively increase the dividend yield for remaining shareholders. "Because there is a stock buyback, the dividend allocation for shareholders will be higher than it should have been because of the treasury shares," Freddy stated.

Navigating a Cyclical Headwind

The 2025 fiscal year proved difficult for the company, with net profit falling 7% compared to the previous year. This downturn was largely attributed to a 6% drop in overall revenue to Rp 982 billion ($61.76 million), driven primarily by lower sales volumes of OCTG casing. However, the company remains resilient, with both net profit and revenue figures finishing at 112% and 103% of their respective revised performance targets.

The trend has continued into the first quarter of 2026, where the company recorded a net profit of Rp 18 billion ($1.13 million), a 73% drop year-on-year. Revenue also contracted by 51% to Rp 155 billion ($9.75 million) in the first three months of the year, underscoring the cyclical nature of the oil and gas infrastructure business.

Strategic Capital Allocation

The RUPST has set a clear roadmap for the remainder of the year. Beyond the dividend distribution, the company will allocate Rp 1 billion ($62,893) to a mandatory reserve fund. The substantial remainder—Rp 166.2 billion ($10.45 million)—has been moved to retained earnings. This capital is earmarked to support SUNI’s business activities and long-term expansion plans as the sector evolves.

With the dividend payment scheduled for July 24, 2026, SUNI is now shifting its focus toward audit and remuneration transparency for the 2026 fiscal year. Shareholders have granted the Board of Directors full authority to manage the dividend implementation process, ensuring the firm remains compliant with all regulatory requirements as it looks to turn the page on its recent performance dip.