Petrosea to spend $80 million over next three years

PT Petrosea Tbk will allocate capital expenditures of about US$80 million for the next three years to support its target to double its revenues to about Rp 2.56 trillion by the end of 2010 from about Rp 1.28 trillion last year.

The company's director Michael J. Goddard said in Jakarta on Wednesday that the capital expenditure or capex funds would be used to finance its construction projects and the purchases of number of new operational facilities.

"The capex funds would come from retained earnings and from both local and overseas lenders," he was quoted as saying by Kompas daily.

"With capital expenditure of up to $80 million, we hope we will be able to meet our target to double the company's revenue to Rp 2.56 trillion by the end of 2010," he said.

Petrosea which provides services in engineering and construction in mining sectors spent about US$62.9 million in capex funds in 2005.

Petrosea, a subsidiary of the Australian company Clough Limited, booked total revenues of Rp 1.28 trillion in 2005, an increase of 46.6 percent from Rp 877.74 billion in 2004, thanks to the significant increase in the company's revenues from the mining sector.

The company's net profit also increased to Rp 83.61 billion in 2005 from about Rp 57.70 billion in 2004. (*)