Holcim Indonesia plans to distribute IDR425bn (US$46m) in dividends, or the equivalent of 40 per cent of its 2011 net income, its chief executive has said.
Speaking to the Jakarta Globe, Eamon Ginley said: “This plan has received approval from shareholders," adding "that would be equivalent to a dividend of IDR/share."
Holcim posted IDR1.06trn in net income last year.??The 2011 dividend distribution increased from 2010, when the company distributed 23 percent of its net income as dividends, which was equivalent to IDR193bn. The company had IDR848bn in net income in 2010.
Separately, Holcim also plans US$200m in capital expenditure for this year. Some of that will be used to help finance the development of the new 1.7Mt factory in Tuban, East Java.
The capital spending will consist of internal cash as well as debt financing. The company’s cash as of 31 December stood at IDR9.77trn.
Apart from continuing construction of the factory, Holcim will take control of the assets of one of its subsidiaries, Semen Dwima Agung, which owns limestone and clay sources in the same area as the Tuban plant. The move is to reduce expenses.