Elnusa allocates $398 million for investment

Publicly listed oil and gas service company PT Elnusa Tbk plans to spend up to US$398 million for the period of 2013 and 2017 to support existing business and expansion projects, Investor Daily reported on Saturday.

Beginning next year, the company would expand its business from upstream oil and gas services to energy related services, Elnusa said in a disclosure statement filed to the Indonesian Stock Exchange (IDX).

With the expansion, the company would not only provide logistic and services in oil and gas sector but also in energy sector such as becoming an independent power producer.

Elnusa hoped the expansion would be able to increase recurring income of the company, which at present still relied on seismic or geo sciences services, drilling services and oil field maintenance services.

Next year, Elnusa expects to raise net income of about Rp 123.6 billion this year to Rp 138 billion next year, which reflected a sharp increase from net loss of Rp 42.77 billion in 2011. (*)