Semen Gresik aims to generate IDR3.28 trillion profits

Semen Gresik aims to generate IDR3.28 trillion profits
Published: 30 November 2009

PT Semen Gresik Tbk targets to grow net profit this year by 30 percent or into IDr3.28 trillion as from the IDR2.52 trillion achievement last year.

President Director of Semen Gresik Dwi Sutjipto said the target is expected to reach by bolstering the cost efficiency and operational performance amidst the robust position of the company in national cement markets.

"Semen Gresik now possesses 45 percent national cement markets. This year, our net profit is targeted to increase by 30 percent and the revenue growth by 10 percent," he said after working meeting involving State Enterprise Ministry and Parliament’s Commission XI Thursday.

In the past five years, the corporate revenue doubled into IDR12 trillion. The net profit also had significant rise from IDR500 billion into IDR2.5 trillion. The earnings before income, tax, depreciation, and amortization (EBITDA) grows 29 percent at average annually.

The domestic cement demand per September fell down from the nine months last year. Responding to the condition, the compnay tries to cut off the cost and boost up the sales and thus in 10 months this year the margin remains positive at the level of 34 percent.

"Now, the cement demand is minus 5 percent. But in the past three months, it grew positively. So, we are sure it is increasing next year," he added.

The company has proven capacity of cement production of 19 million tons per year to cover the national consumption needs of 38 million tons per year. However, with the 47 million tons national cement production, industry will remain oversupplied.

Dwi Sutjipto added the company has allotted next year capital expenditure worthUS$400 million from internal cash. The capital expenditure here is part of the expansion fund allotment worth US$1.2 billion up to 2014.

Meanwhile, PT Gajah Tunggal Tbk aims to grow the sales by 15-20 percent next year. Director of Gajah Tunggal Catharina Widjaja said this year the compnay targets the sales as that of last year worth IDR7.96 trillion.

"We could barely explain the net profit as it depends on the fluctuation of rupiah exchange rate against foreign currencies," she added.

The company has just acquired letter of credit commitment worth US$30 million from HSBC Indonesia. Besides, the firm is either seeking US$20 million loans from a local bank.

"We have covenant from bond issuance so the loan should be US$50 million at maximum."

Next year, Gajah Tunggal prepares US$30-40 million capital expenditure.