PP plans greater capex to finance energy projects
Thursday, December 8 2016 - 04:57 AM WIB
IDX-listed construction and engineering company PT PP Tbk plans to boost its capital expenditure (capex) next year by six-fold to Rp 26 trillion compared to Rp 4 trillion for this year, the bulk of which to be used in financing various energy projects.
PP President Director Tumiyana said on Thursday that about 40 percent of the 2017 capex will be allocated for investment in energy projects, 18 percent in residential projects, and the remainder for financing infrastructure projects such as port and airport.
Funding for the 2017 capex will come from bank loans and bonds, he added.
Tumiyana said that as per November of this year, the company has contracts worth a combined Rp 29.5 trillion, or close the full-year target of Rp 31 trillion.
Among of the projects won by the company as per October 2016 include PLTMG Lombok Peaker 130-150 MW gas engine power plant project worth Rp 1.42 trillion
The company estimates revenue this year to jump by 37.58 percent to Rp 2.18 trillion from Rp 14.6 trillion last year. Net profit is expected to increase by 24.58 percent to Rp 1.04 trillion.
Editing by Reiner Simanjuntak