Indika sets lower 2016 capex

IDX-listed integrated energy company PT Indika Energy Tbk said that it has set a lower capital expenditure target for this year due to the lingering downturn in coal price.

The company said in a presentation material last week that it has allocated US$40.9 million for capital expenditure this year, lower than the $58.7 million realized for last year.

According to the document, $27.4 million will be allocated to IDX-listed PT Petrosea Tbk, which is engaged in coal mining and oil and gas services, engineering design, construction and project management. Petrosea has said that it aims to reduce the contribution of the coal mining services division to its total revenue to 65 percent from 85 percent last year amid the lingering coal downturn, and to increase the contribution of the engineering and project management business.

Meanwhile, IDX-listed sea logistics and transshipment services provider PT Mitrabahtera Segara Sejati Tbk will get $6.1 million, coal miner PT Kideco Jaya Agung to get $2.7 million, and the remaining $4.7 million for Indika. Last year, Indika booked a revenue of $1.10 billion, and a net loss of $44.6 million.

Indika said that coal production at Kideco this year is expected to decline to 32 million tons from 39 million tons last year.

Editing by Reiner Simanjuntak