Intraco sees higher heavy equipment sales next year, seeks new power projects
Thursday, December 8 2016 - 04:55 AM WIB
IDX-listed heavy equipment company PT Intraco Penta Tbk is optimistic that heavy equipment sales next year will increase as coal miners expand production following the rise in the price of the commodity.
While did not disclosing the projected heavy equipment sales volume for next year, Intraco Finance Director Fred L. Manibog said on Wednesday that the company?s revenue in 2017 is projected to at least increase by 20 percent to around Rp 1.4 trillion from sales and leasing of heavy equipment as well as maintenance service.
He said that the company currently has about Rp 1.23 trillion worth of contracts on hand.
Coal price has been on the rise since the past several months, sending the government HBA coal reference price for December surpassing the US$100 per ton level, the highest since May. The rise in coal price has prompted some miners to announce higher production next year. Some miners, however, said that coal price has yet to stabilize, and may undergo correction in the near term.
Intraco has been relying on heavy equipment sales a source of revenue. The company, however, has started diversification into power plant development. President Director Petrus Halim said that the company will be more aggressive in the new power plant business as it is planning to participate in tender of a number of coal-fired power plant projects in the country. ?We?ll participate in a number of power plant tenders. We?ll only participate in tenders that we?re certain to win,? he said.
Intraco has participated in a tender to develop a 2x100 MW coal-fired power plant project in South Sumatra, where the company has passed the first bidding stage.
Intraco in partnership with Synohydro Hong Kong Lt has won tender to develop a 2x100 MW coal-fired power plant in Pulau Baai, Bengkulu Province, which is targeted to be completed in 2020.
Petrus said that the company also open to option for acquisition of coal mine asset that would provide coal for the company?s future power plant projects. He said that Intraco prefers coal assets located near the projects, and the coal quality meets the specifications required by the power plant projects.
Editing by Reiner Simanjuntak