Semen Gresik’s Q3 net profit increases by above 10%

Semen Gresik’s Q3 net profit increases by above 10%
Published: 25 October 2007

PT Semen Gresik Tbk has estimated that its three quarter profit will increase by more than 10% from IDR394 billion on the same period of 2006.  
 
Semen Gresik’s Vice President Director Rudiantara said the company has been successful in cutting the production cost so that the revenue has increased substantially.  
 
"We have been able to cut cost of sales to IDR310,000/t even though the coal price has increase. Our net profit growth will be double digit in three quarters."  
 
He said the company has been able to cut transportation cost so that the cost of sale is just the same as last year’s figure.  
 
The company has planned to issue some bonds and to get bank loan to expand the business. But it will limit the foreign currency bonds at 50% to the external financing target.  
 
The maximum offshore bonds will be US$400 million and the total external financing will be US$800 million.  
 
The Secretary of SOE Ministry Muhammad Said Didu said he did not know what the agenda of the next EGMS of  Semen Gresik will be. But he said the government will support the company’s expansion plan.  
 
The company has planned to invest US$1.3 billion on cement facilities and power plant. In this regard, the company will provide IDR500 million, and the rest will be from external sources.