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State infrastructure projects to boost WIKA's earnings next year
State-owned construction firm PT Wijaya Karya (WIKA) expects a 15
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State-owned construction firm PT Wijaya Karya (WIKA) expects a 15.63 percent jump in revenue in 2009 after a pledge by the government to spend huge state funds next year on infrastructure projects.
In a statement Sunday, WIKA forecast its 2009 revenue would rise to Rp 7.4 trillion (US$669 million) from about Rp 6.4 trillion this year, while net profit for 2009 is forecast to rise to Rp 175 billion, up by 21.5 percent on the Rp 144 billion forecast for the end of 2008.
WIKA finance director Ganda Kusuma said the company was fully aware of the unfavorable conditions for next year's business, but remained optimistic it would enjoy substantial growth due to government-sponsored infrastructure projects.
"The company will focus on government projects (next year) both from the central and regional governments. We will also focus our efforts on securing our liquidity," Ganda said.
As of November this year, WIKA had secured multi-annual contracts valued at a total of Rp 14.31 trillion.
The company expects to win five more construction projects with a total value of Rp 883.25 billion by the end of December.
These projects include part of the work on a 700 megawatt power plant in Tanjung Priok, North Jakarta including a contract worth Rp 340 billion; a high school building worth Rp 65.89 billion and a sports center worth Rp 118.59 billion in Kuantan Sengingi, Riau Province.
Other projects include a dam in Tembesi, Riau Islands Province valued at Rp 224.05 billion and a flood canal project for the Ciliwung and Cisadane rivers in West Java worth Rp 883.25 billion.
WIKA said it would get more revenue next year because of several ongoing power plant projects which were multi-annual projects scheduled to be completed in 2010.
The power plant projects and other infrastructure projects would contribute substantially to the company's revenue this year and in the next few years.
The government has allocated a budget of Rp 34.98 trillion for the public works ministry next year.
WIKA is also looking at projects from state companies, especially from state power company PT Perusahaan Listrik Negara (PLN) which is in the process of completing the construction of a power plant program totaling 10,000 megawatts of electrical capacity under the government's accelerated power program.
