Radiant Utama Interinsco, which runs a business of supporting services for the oil and gas sector, expects to handle working contracts with a combined value of Rp 1.5 trillion (US$166 million) this year.
“The total amount comprises new contracts worth Rp 750 billion and the remaining are carry over contracts,” corporate secretary Coki Lubis said on the sidelines of an extraordinary shareholders meeting on Tuesday.
Coki said that last year Radiant Utama worked on contracts worth Rp 1.2 trillion.
With the new working contracts, the company expects to raise Rp 1.24 trillion in total revenues this year, up by 11.71 percent from Rp 1.11 trillion estimated for 2011.
The company is also aiming to reap Rp 203 billion in operating income this year, an increase of 31.81 percent from an estimated Rp 154 billion in 2011. The net profit is expected to stand at Rp 42 billion this year compared to Rp 12 billion in 2011.
“We actually can earn above Rp 30 billion in 2011. However, we suffered foreign exchange losses amounting to about Rp 25 billion,” Coki said.
Radiant Utama president director Sofwan Farisyi said that his company would begin expanding the businesses of its subsidiaries this year. Sofwan revealed that one of Radiant Utama’s subsidiaries, PT Supraco Lines, hoped to obtain one or two projects involving floating storage and offloading vessels (FSO).
“The projects are worth about $30 million. Those we are seeking are worth $60 million for five to six years,” Sofwan said.
He said that the negotiations over the projects were expected to be completed in March.
Sofwan revealed that another subsidiary, PT Radiant Bukit Barisan E&P, would drill a well in West Sumatra this year.
“The investment requires $5 million per well. We estimate that the well in West Sumatra has 87 million billion cubic feet [bcf] of gas and 26 million barrels of oil,” he said.
Sofwan said that another subsidiary, PT Supraco Mitra Energi, would start land clearing for a mini hydro project.
Shareholders of Radiant Utama approved on Tuesday the company’s appeal to restructure its company and subsidiary organizations. The company previously only had two subsidiaries; PT Radiant Tunas Interinsco and PT Supraco Indonesia, which owns Radiant Bukit Barisan E&P, Supraco Mitra Energi, Supraco Lines, PT Sorik Marapi Geothermal Power and PT Supraco Deep Water.
After shareholder approval, Radiant Utama now has three additional subsidiaries, which were previously were owned by Supraco Indonesia. The three new subsidiaries are Radiant Bukit Barisan E&P with 95 percent ownership, Supraco Lines with 95 percent of ownership and Supraco Mitra Energi with 60 percent of ownership.
Supraco Indonesia still owns Supraco Deep Water and Sorik Marapi Geothermal Power.
“The new structure made no significant changes in contribution to Radiant Utama because those subsidiaries are already consolidated in our financial report. However, the new structure makes it easier for us to control and improve other companies under our holding,” Sofwan said. (rcf)