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Bukaka closes US$67 million deal with Chevron
Publicly listed infrastructure company Bukaka Teknik Utama Tbk has closed a US$67 million procurement and maintenance project deal with Chevron, in a collaboration expected to help Bukaka achieve its revenue target this year
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Bukaka Teknik Utama president director (center) Irsal Kamarudin poses with the company's board of directors after a shareholders meeting on Thursday. (thejakartapost.com/Sepsha Dewi)
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ublicly listed infrastructure company Bukaka Teknik Utama Tbk has closed a US$67 million procurement and maintenance project deal with Chevron, in a collaboration expected to help Bukaka achieve its revenue target this year.
“It is a significant effort for the company amid the weakening purchasing power and industries’ poor performances,” Bukaka president director Irsal Kamarudin said after a shareholders meeting in Jakarta on Thursday.
The company, he continued, had also signed a Rp 320 billion ($23.6 million) contract with the US-based Jabil Circuit on the construction of an aircraft components manufacturing facility.
The two projects would begin this year, helping the company to close in on its 2016 revenue target of Rp 3.9 trillion, Bukaka finance director Sofiah Balfas said, adding that Bukaka would likely to revise up the target.
Assuming the economy would grow by about 5 percent, the company would focus on hydropower plant development, Irsal said. At the same time, Bukaka would continue to strengthen its core business on the construction of towers, bridges and ramps for oil and gas services.
To increase its capacity to handle more projects, the company — owned by the family of Vice President Jusuf Kalla — is arranging a right issue for the second quarter. Bukaka had prepared capital expenditure of Rp 355 billion to fund the projects, Irsal said.
In the first quarter of the year, Bukaka registered Rp 57.78 billion in net income, a 3.78 percent year-on-year increase, thanks to the acceleration of government spending on infrastructure developments.
Meanwhile, shareholders have agreed to the company’s plan to distribute a final cash dividend worth Rp 33.8 billion, 50 percent of last year’s net income. (sha/ags)
