Gresik president director Dwi Soetjipto said last week that the company’s net profits were estimated to reach IDR1.66trn  in the first half of this year, an increase of 10 per cent from IDR1.51trn in the same period last year.

He said that during the first five months of this year, the company had sold 6.9Mt of cement, an increase of 14 per cent from the same period last year largely due to an increase in orders from Kalimantan and several regions in eastern Indonesia.

With the encouraging first half results, Dwi said he believed the company’s target to increase total net profits by 10 per cent from IDR3.33trn last year were achievable.

The company also recently announced that it would pay dividends worth 50 per cent of its profit, or IDR1.26trn (US$123m) from its 2008 profit of IDR2.52trn. 

“Each shareholder will get IDR215.19 a share, to be paid as soon as possible,” said Dwi Soetjipto, president director of Semen Gresik. In 2008, it paid a dividend of IDR1.77trn, equal to IDR149.66 per share and 50 per cent of company profits.

Meanwhile, the finance director Cholil Hasan said the company is hoping to begin construction of its new plant in West Sumatra in the latter part of the year.

"Studies for the construction is in the final phase, as well as the financing scheme. We may start construction in the later part of 2010," Mr Hasan told Dow Jones Newswires, adding the plant will have a capacity of 2.5Mta.

The company is currently constructing two cement plants as it has fully utilised its production capacity.

Published under Cement News