Rukun: Gresik gas pipeline to enter commissioning phase soon

By Thomas R. Sembiring

IDX-listed PT Rukun Raharja Tbk said that a 20-km gas pipeline project currently under the final stage of construction in Gresik, East Java, will enter commissioning phase later this year.

?Construction was started in April, and is currently at finalization stage. Commissioning is expected in December,? said Budiman Parhusip, President Director of Rukun Raharja on Friday.

The US$22.9 million pipeline, developed by Rukun?s subsidiary PT Triguna Internusa Pratama (TIP), will be used to transmit 15 mmscfd of gas from the Bukit Tua field in Ketapang Block, operated by Malaysia?s Petronas, to state-owned electricity firm PT PLN.

Elsewhere, Rukun reported that revenue in the first nine months of this year increased slightly to US$147.01 million compared to $145.54 million in the corresponding period of last year, mostly contributed by gas distribution, transmission and compression businesses.

Full-year revenue, however, is expected to reach only $191.24 million, lower than last year?s $197.12 million.

Net profit in the January-September period of this year declined by 10 percent to $5.49 million compared to $6.11 million in the corresponding period of last year due to slowing economic growth and exchange rate fluctuation which increased significantly its income tax cost.

?The slowing Indonesian economy in the past six months has slowed down demand,? said Djauhar Mauladi, Finance Director of Rukun Raharja.

Djauhar, however, expects that the various efficiency programs implemented by the company will help increase slightly net profit this year to $7.95 million compared to $7.80 million last year.

He said that net profit next year is projected to increase by 6.56 percent to $199 million. The company plans to allocated $40 million for capital spending next year.

Editing by Reiner Simanjuntak