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Semen Indonesia to set aside 40 percent of profit as dividends
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Publicly listed state-cement producer PT Semen Indonesia (SI) president director Hendi Prio Santoso (standing, third from left) with SI president commissioner Sutiyoso (sitting, second from left) pose during a photo session after attending an annual shareholders meeting at the Indonesia Stock Exchange (IDX) building in Jakarta on Monday. (JP/Stefanno Reinard Sulaiman)
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ublicly listed state-cement producer PT Semen Indonesia (SI) booked Rp 2.01 trillion (US$144 million) in net profit last year, a 55 percent drop from the previous year, due to rising coal prices and an oversupply in the past three years.
The firm also announced that it would set aside 40 percent of its 2017 net profit, or Rp 805.68 billion, as dividends for its shareholders.
“The remainder of the net profit, Rp 1.2 trillion, will be used to support our operational activities and development projects,” SI corporate secretary Agung Wiharto said after the shareholders meeting on Monday in Jakarta.
Meanwhile SI booked Rp 26.13 trillion in revenue, a 6.4 percent increase from the previous year. However, due to an oversupply of cement, its average cement price has decreased 8 percent.
“Furthermore, the industry also saw an increase in raw material, fuel and electricity to almost 40 percent, which shrunk our operating income by 36 percent to Rp 3.34 trillion last year,” he added.
SI is the largest cement producer in the country with a market share of some 40 percent.
Last year, the company also recorded total sales of 31.5 million tons of cement or an 8 percent increase from the previous year, mainly for the domestic market. SI also retained its growth in production volume in 2017, which saw a 9 percent increase to 30.8 million tons of cement.
Cement companies have faced tighter competition over the past few years as nationwide production capacity increased to 106.3 million tons as of November last year, creating an oversupply of stock. (dwa)
