MBSS allocates $5-6m capex
Thursday, April 28 2016 - 02:25 AM WIB
IDX-listed sea logistics and transshipment service provider PT Mitrabahtera Segara Sejati Tbk (MBSS) has allocated US$5-6 million for capital expenditure this year, or relatively the same as last year?s.
MBSS Director Trevor Larbey said on Wednesday that the company has decided to limit capital expenditure this year due to the lingering coal downturn.
He said that the capex will be largely used to refurbish the company?s vessels, which are majority acquired in 2011-2012, thus have entered the five-year cycle period for overhaul.
MBSS estimated there will be some 30 vessels to undergo overhaul, which would take about 28 days.
Trevor said the company also plans to make vessel acquisition this year, the number of which would depend on demand for the company?s services.
Last year, the company acquired two tug boats and two floating cranes. MBSS in 2015 signed two barging contracts, one with PT Pelayaran Sanditia Perkasa Maritim, a subsidiary of IDX-listed coal miner PT Berau Coal Energy Tbk, and another with coal mining firm PT Arutmin Indonesia.
Trevor said that financing for the 2016 capex will come from internal funds. The company?s total cash reserves as of end of last year stood at US$46.67 million.
Editing by Reiner Simanjuntak