Semen Gresik 1H Net Likely +40% On Yr

Semen Gresik 1H Net Likely +40% On Yr
Published: 27 June 2008

PT Semen Gresik’s first-half net profit will likely grow 40% on year to IDR980 billion on higher sales, Chief Executive Dwi Soetjipto said Friday.

Soetjipto said that Gresik’s market share in the domestic market is likely steady around 45%.

He added that although last month’s hikes in petroleum product prices will affect cement demand this year, he’s still optimistic that cement sales in Indonesia will grow in a "double digits" range this year from 44.14Mt last year. He didn’t elaborate.

The state-owned company is Indonesia’s largest cement maker by volume.

Meanwhile, Gresik Vice President Heru Adhiningrat said that the company is looking to issue bonds in the offshore market later this year. However, the plan will hinge on international market conditions, Adhiningrat said.

The company has named JP Morgan as the lead underwriter for the planned issue, he said, declining to comment on the issue size.

A company source told Dow Jones Newswires Gresik is looking to issue $500 million in offshore bonds to help support its plan to built two new cement and 10 power plants, which are expected to require around $1.2 billion in total investment by 2010.