Local integrated mining services provider PT Dharma Henwa, which was earlier this year acquired by coal mining giant PT Bumi Resources, expects revenue to increase by 20 percent next year from a year earlier as demand increases.
Dharma director Gani Bustan said after a shareholders’ meeting on Monday that the company’s revenue would grow to US$269 million in 2010 from the estimated $224 million this year on higher orders.
“We received more orders from buyers,” he said, adding most of the contracts came from Bumi.
During the meeting, shareholders approved a plan by the company to carry out a rights issue in January, when it is expected to offer up to 28.5 percent of its stake worth $66.1 million, Gani said.
Under the rights issue plan, shareholders can trade every five shares they own for two new shares at the price of Rp 100 for each share.
The standby buyer for the rights issue is local securities company PT Danatama Makmur.
Dharma will use 71.51 percent of the share issue proceeds for debt repayments, 20.88 percent for the company’s working capital and the remaining 7.61 percent to purchase heavy equipment.
The company’s total debts reached $193 million as of September, while its revenue dropped 8.7 percent to $151 million.
Net profits dropped by 95.79 percent in the third quarter of this year to $300,000 from $7.13 million in the same period in 2008 on the back of lower production and sales.
Gani said that the company’s low performance was because the company has been focusing on efforts to reduce its outstanding debts.
The company’s total assets dropped by 20 percent to $471 million from the previous $586 million due to deprecation of assets and amortization.
Dharma president director Adwin Suryohadiprojo said the company was also looking at plans to become a contractor with mining firm PT Newmont Nusa Tenggara, now partly owned by a Bumi subsidiary.
“We must improve our fundamental performance first,” he said.
The plan is expected to add to the company’s portfolio of active projects beside its long-term contracts with PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, Bumi’s biggest coal producing subsidiaries.
