RAJA sees higher gas distribution volume next year
Thursday, December 8 2016 - 03:10 AM WIB
IDX-listed gas distribution company PT Rukun Raharja Tbk (RAJA) sees significant increase in gas distribution volume next year following the completion of two gas pipeline projects in Gresik, East Java Province, and in Sei Gelam, Jambi Province.
?With the completion of the Gresik and Sei Gelam pipelines, we?ll make optimization so that gas flow will increase significantly in 2017,? said RAJA President Director Budiman Parhusip on Wednesday.
While did not disclose the gas distribution volume for next year, Budiman said it will increase the company?s revenue next year by 10.54 percent from the estimated US$182.5 million this year.
RAJA Finance Director Djauhar Maulidi said that net profit next year is projected to double to $6.2 million from the estimated $3.21 million this year. ?The year 2017 will be a revival year for us to improve performance,? he said.
He said that performance this year has been under pressure due to the slowdown in the country?s economic growth and delay in the commissioning of the Gresik gas pipeline as gas flow from the Bukit Tua field has been postponed. Last year, RAJA booked a net profit of $7.9 million, compared to this year?s estimate of $3.2 million. Meanwhile, revenue this year is estimated to decline to $182.5 million from $193.7 million last year. More than 93 percent of revenue is contributed by the gas distribution business.
He added that there was decline in the distribution of gas in West Java, Jambi, and Banten amid the economic slowdown.
In the first nine months of this year, revenue reached $134 million, down from $147.3 million in the corresponding period of last year, while net profit fell to $2.7 million from $5.5 million.
Elsewhere, Budiman said that the company is set for expansion next year including through asset acquisition, which is expected to be completed in the second semester of 2017. He did not provide details.
He said that if the consortium, in which RAJA is a member, wins tender for the PLTG Java Bali Peaker 4 gas-fired power plant, it will provide new opportunities for the company to expand its gas infrastructure business.
Budiman said that his company is also seeking for additional gas supply from upstream producers including Pertamina EP, Talisman and ConocoPhillips.
Editing by Reiner Simanjuntak