S

tate-owned construction firm PT Waskita Karya (WSKT) enjoyed higher net profits in 2012 of Rp 256 billion (US$26.43 million), an increase of 48.8 percent compared with 2011, according to its latest unaudited financial report.

The publicly listed company also saw a 19.8 percent increase in revenues to Rp 8.72 trillion, thanks to several high-value contracts it secured last year.

The contracts consisted of projects for the government, state-owned enterprises (SOEs), provincially owned enterprises (BUMDs) and private firms, Waskita’s investor relations head, Agus Sugiono, said in an email.
Source: StockWatch
In 2012, Waskita signed Rp 10.74 trillion worth of new contracts, a figure 28.6 percent higher from the previous year. Most of the new contracts were for government projects. They made up 49.6 percent of the figure, followed by SOEs and BUMDs with 25.5 percent, and private firms with 24.9 percent.

Some of the projects that the company worked on last year included the Rp 419.68 billion renovation of Juanda International Airport in Surabaya, East Java; the Rp 581.39 billion construction of a toll road connecting Semarang and Bawen in Central Java; and the Rp 703.08 billion construction of a toll road in Benoa, Bali.

Waskita is aiming to book revenues of Rp 11.2 trillion by the end of the year, up 28 percent from 2012, and hopes its net profits will grow by 42 percent to Rp 363 billion. It expects the government, SOEs and BUMDs to remain the largest contributors to this year’s workload with 70 percent, while the private sector will make up 30 percent.

“This year we hope to see the government increase its infrastructure budget, driven by the MP3EI [Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development].

However, on the other hand, we predict that business will be tougher this year due to tougher competition,” Agus said.

In January 2013 alone, the company booked Rp 699 billion in new contracts, ranging from a hospital project in Tangerang, Banten, to coastal development work in Karimun, Riau.

It will also expand its overseas work to Timor Leste, having entered into talks with the Timor Leste government. Waskita is slated to build a 20-kilometer road, a steel-framed bridge and a 15-kilometer medium-voltage transmission line. All these projects are estimated to be worth a combined total of Rp 500 billion, and will commence in the second half of the year.

The company has also secured two new projects in Saudi Arabia. They comprise an office and apartment complex, and a parking area in Riyadh.

Each project will cost around Rp 120 billion and will take up to 12 months to complete.

To finance this year’s projects, Waskita is allocating Rp 440 billion in capital expenditure. The funds have been generated from the company’s initial public offering (IPO) in December last year and a bonds issuance.

According to Agus, 27.9 percent of the funds will be used to purchase necessary equipment; 29.3 percent to finance the development of its pre-cast concrete plant in Bali; 17 percent for toll-road investment; and the remaining 25.8 percent for office operations.

Waskita has completed the first stage of the Bali plant’s development with a total capacity of 200,000 tons per year. It is now working on the next stage to increase the capacity to 450,000 tons per year.

As of December 2012, Waskita’s total assets amounted to Rp 8.36 trillion. Its liabilities and equities reached Rp 6.36 trillion and Rp 2 trillion, respectively.

Waskita’s shares closed on Friday at Rp 510 apiece, increasing from Rp 495 when the bourse opened.