PP (Constr. & Eng. / EPC) to issue Rp 600 billion bonds next year

PT PP Tbk (PTPP), the state owned construction and engineering company, plans to issue bonds worth about Rp 600 billion in the first semester of next year to further strengthen the company?s working capital, Investor Daily reported on Monday

The company?s Corporate Secretary Betty Ariana said in Jakarta last week that the proceeds from the bond offering would be used support the company?s new engineering, procurement and construction (EPC) projects.

?We will carry out a lot of EPC projects next year,? she said, adding that next year planned to bid five EPC projects mostly related to the construction of power plants.

Betty said two of the five projects would comprise of two large power plants worth about Rp 1 trillion, each. ?The power plant will have capacity of 1 x 100 MW each, both owned by PLN. One is located in Batam and another one in Kalimantan,? Betty said.

According to her, PP would form a consortium with its partners in the handling the EPC projects. ?But, PP will have 60 percent stake in the consortium,? she added.

In the third quarter of 2012, PP booked net profits of about Rp 80 billion, a 30 percent increase from the same period of last year. ?The increase was supported by large construction and EPC contracts secured this year,? she said.

In the third quarter, this year, the company?s new contracts reached Rp 15.2 trillion or about 90.5 percent of this year?s target of Rp 16.8 trillion. The figure also showed a 120 percent increase from Rp 6.9 trillion in the same period last year. (*)