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Petrosea upbeat about high revenue growth
Publicly listed engineering, construction and mining company PT Petrosea (PTRO) is upbeat that it will continue to see high revenue growth with the expected increase of operating income from its mining business
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span>Publicly listed engineering, construction and mining company PT Petrosea (PTRO) is upbeat that it will continue to see high revenue growth with the expected increase of operating income from its mining business.
Like last year, the firm’s 2019 net profit is projected to exceed its initial target, said Petrosea president director Hanifa Indradjaya.
In a press conference on Monday, the company reported a net profit of US$22.96 million in 2018, a roughly 97 percent increase from the $11.63 million recorded in 2017. The company’s operating income grew 48.57 percent from $313.48 million in 2017 to $465.74 million in 2018.
The company’s 2018 net profit was higher than the initial target of $17 million, Hanifa said, adding that he was upbeat this year’s profit would also exceed the target, which he declined to reveal.
One of Petrosea’s main sources of growth last year came from its mining unit, which contributed $264.52 million or 56 percent of the company’s total revenue.
Despite the sharp increase in income, Hanifa said the company did not have any plans to acquire other companies like last year when it acquired 95 percent shares of port facility operator PT Kuala Pelabuhan Indonesia.
“We don’t see any potential [acquisitions] so far, mining contractors or any other firms. We are now focusing on optimizing what we have,” he said.
Petrosea booked $919.6 million in on-hand contracts (backlog) last year, a 32.1 percent growth from 2017.
Meanwhile, for this year, Petrosea finance director Romi Novan Indrawan said the firm expected to have an additional backlog of about 30 percent of what it inked last year.
“We expect to have an additional 30 percent from the backlogs that we got last year, mainly from mining projects, and engineering and construction work,” he said.
Romi further said the firm has inked two mining deals that are worth around $27 million in total. One of the contracts is from PT Kideco Jaya Agung.
Besides a backlog target, the firm is also targeting to sign a contract for the overburden removal of about 137 million bank cubic meters (BCM) of coal and to reach a coal production target of 38 million tons, Romi said.
“As of the first quarter of 2019, we have removed 28.6 million BCM of overburden, or almost the same amount in the same period last year, when we removed 30 million BCM,” he said adding that the company’s coal production in the first quarter had reached 7.1 million tons.
Petrosea has allocated $175 million in capital expenditure this year, $100 million of which will go to capacity improvement, such as to buy eight excavators and up to 10 dump trucks.
The company’s shareholders agreed on Monday a proposal to distribute $8.72 million or about 38 percent of the company’s total net profit last year as dividends to its shareholders.
