Radiant Utama secures US$35 million loans

PT Radiant Utama Interinsco Tbk (RUIS), a publicly listed company involved in providing services in oil and gas industry, has secured loans worth US$35 million from foreign banks, Kontan reported on Saturday.

The company?s corporate secretary Coki Lubis said in Jakarta on Friday that the loans would be used to purchase a mobile offshore production unit (MOPU) in a bid to cut down operating costs. ?By owning one, we no longer need to rent,? he said.

Lubis, however, refused to name the lenders. ?The lending rate is low enough,? he added.

According to Lubis, by operating its own MOPU, it can generate additional income of up to Rp 5 billion. The company expects total revenues to reach Rp 2.15 trillion this year, a 14.28 increase from Rp 1.05 trillion in the previous year, while net profit is projected to increase to Rp 26 billion, more than double from Rp 12.82 billion in the previous year.

?With the projected lower operating costs, we are optimistic the profit target can be achieved,? he said, adding in the first quarter of this year, the results were quite encouraging. Net profits in the January-March period rose by 227.3 percent to Rp 3.6 billion thanks to the increase in profit margin, he added. (*)