Petrosea increases 2014 capex to $45m

IDX-listed mining services, engineering and construction company PT PetroseaTbk has allocated U$45 million worth of capital expenditure (capex) for this year, up from $30 million last year, Investor Daily reported on Saturday.

Company President Director Eddy Junaedy was quoted as saying that much of the expenditure will go for maintenance of mining heavy equipment as their average age are already 3-4 years old.

Petrosea estimated revenue this year to grow by 10 percent to US$393 million, while net profit also to increase by 10 percent to $19.4 million, the paper said. The mining sector is expected to continue to become the largest contributor to revenue, about 87 percent of which was contributed by the sector last year.

Meanwhile, Kontan daily quoted company finance director KurniaAriawan as saying that the company aims to increase overburden removal volume this year by 10 percent to 155.1 million bank cubic meters from 141 million bcm last year.

Kontan also said that the company aims to expand its logistic offshore facility called Petrosea Offshore Supply Base (POSB) in Kariangau, TanjungBatu, East Kalimantan. The storage area of the POSB is currently 15,000 square km. The company is still in the process completing the feasibility study for the planned expansion, which hopefully could be implemented this year. (*)