Mitrabahtera to spend US$ 17 million for new barging fleet

PT Mitrabahtera Segara Sejati Tbk (MBSS) plans to spend US$17 million to buy five sets of barging fleet as it seeks to boost revenue, the company said.

The plan is in line with the company's overall plan to buy 15 barges this year as earlier stated in its prospectus for an initial public offering, said Ika Bethari, Mitrabahtera's Director for Corporate Planning and Investor Relations.

?We have bought 10 barges and one floating crane earlier and made them operational in the first half of this year,? said Ika in a statement on Tuesday. The additional barges have increased the company's revenue by 29 percent to Rp465 billion in the first six months of this year from Rp360 billion in the same period last year, said Ika.

The company's gross margin rose 42% compared to 40% previously. Mitrabahtera posted EBITDA margin of 46% while its net profit reached Rp 146 billion.

The firm has signed a barging and transhipment contract with PT Korintiga Hutani (Konindo). Under the agreement, Mitrabahtera agrees to provide four sets of vessels and one set of crane barge to transport a guaranteed amount of one million metric tonnes of coal per year for Konindo.

?Konindo also has an option to buy the vessels for US$5 milllion when the contract expires or it has met minimum volume," said Patricia. (*)