TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Adhi Karya books Rp 1.3 trillion in new contracts as of Feb

State-run construction firm Adhi Karya announced Monday that it had secured up to Rp 1

The Jakarta Post
Thu, March 12, 2015

Share This Article

Change Size

Adhi Karya books Rp 1.3 trillion in new contracts as of Feb

S

tate-run construction firm Adhi Karya announced Monday that it had secured up to Rp 1.3 trillion (US$98 million) in new contracts as of February, less than 10 percent of the company'€™s target for 2015.

An analyst, however, said there is still ample room to grow for the publicly listed firm as most of infrastructure projects from the government usually come by year-end.

Adhi Karya reported in a written statement published in the Indonesia Stock Exchange (IDX) that the company had secured around 8.55 percent of its targeted new contracts of Rp 15.2 trillion this year.

The statement said that out of the total Rp 1.3 trillion the company generated as of February, about 77 percent came from building projects carried out by its subsidiary Adhi Persada Gedung. About 10 percent of the new contracts were contributed by road and bridge projects, while the remaining 13 percent came from other infrastructure projects.

An apartment project in Bekasi, West Java, made up the lion'€™s share of the new contracts with Rp 437.1 billion. Another residential high rise project in Bogor, also in West Java, cashed in Rp 204.5 billion in new contracts, the statement further read.

Kiswoyo Adi Joe from Investa Saran Mandiri said the first two month'€™s of contracts could not illustrate the company'€™s expected full-year performance, as most infrastructure projects from the government usually came in the second half of the year.

'€œWe project that Adhi Karya will be able to achieve its new contract target this year on the back of an anticipated surge in infrastructure projects the government has been planning to carry out this year,'€ Kiswoyo said.

'€œWith the upcoming projects, the company might even see its bottom line grow by 40 percent by year-end.'€

According to Adhi Karya'€™s statement, about 64 percent of its new contracts came from private projects, while government-funded projects and projects from fellow state-run companies only contributed 18 percent by February.

About 96 percent of new contracts came from construction and EPC (engineering, procurement and construction) projects.

In 2014, Adhi Karya '€” along with other publicly listed builders '€” experienced contracted business on sluggish investment in the election year, as well as cuts to the infrastructure budget made by the previous government in response to ballooning fuel subsidies '€” a move that affected construction demand from government institutions and state-run companies.

Adhi previously aimed to book Rp 15.2 trillion in new contracts last year '€” similar to the initial target for this year '€” but later revised down to Rp 10.5 trillion.

Despite having revised its target, Adhi still missed its 2014 new contract target, as it only generated 87.62 percent of the targeted figure.

The company ended booking declining revenue and net profit for 2014. Its revenue was down by around 12 percent from Rp 9.8 trillion in 2013 to Rp 8.65 trillion last year, while its net profit slid 20 percent to Rp 324.07 billion.

The result is in contrast with other listed state-run construction firms '€” which managed to boost performance after the election concluded.

The company '€” which works on the problematic Jakarta monorail project and Hambalang athlete village '€” suffered from up to 66 percent in declines in joint venture income and ballooning joint venture losses.

Adhi '€” which is expected to receive Rp 1.4 trillion from the government'€™s state capital injection '€” aimed to book Rp 13.2 trillion in revenue and Rp 440.1 billion in profits this year.

'€” JP/Anggi M. Lubis

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.