Rukun Raharja to make acquisition next year

IDX-listed gas distribution firm PT Rukun Raharja plans to make acquisition of a company operating in similar business next year.

According to company recent presentation material, it plans to allocate US$70 million of capital expenditure next year, of which $55 million will be used to finance the planned acquisition. The company did not disclose the identity of the acquisition target.

Another $11 million of the capex will be used to help finance construction of new gas pipelines. The remainders will be allocated for financing power plant projects and other gas infrastructure facilities.

Rukun also said that it is seeking bank loans worth up to $100 million to help finance future expansion plans.

The company?s booked a revenue of $106.56 million in the first nine months of this year, a 20.5 percent drop from the same period of last year. The company has anticipated lower revenue and profit this year due to lower gas sales particularly due to weaker gas demand from state-owned electricity firm PT PLN in Jambi.

Rukun, however, said that revenue next year is expected to increase from the estimated $145.15 million this year on higher gas sales and revenue from gas pipeline toll fee in Gresik, East Java.

Editing by Reiner Simanjuntak