Timah sees higher revenue next year
Wednesday, November 11 2015 - 01:59 AM WIB
IDX-listed tin giant PT Timah Tbk expects higher revenue next year on tin price recovery and higher contribution from non-tin businesses.
Timah President Director Sukrisno said on Tuesday that revenue next year is projected to increase by more than 33 percent to around Rp 10 trillion from the expected Rp 7.5 trillion for this year.
He said that tin price is expected to recover to around US$20,000 per ton next year. Metal price has been under pressure this year averaging at around $16,516 per ton.
He added that non-tin businesses such as property, hospital and shipyard to provide greater contribution to revenue next year. ?Next year, the portion will be 75 percent tin, and 25 percent non-tin,? he said.
Sukrisno said that capital expenditure for next year is projected to be more than Rp 1 trillion among others for replacement of production equipment, although the final figure is still being evaluated.
He added that the capex will be financed via internal funds and bank loans. ?Luckily, we have never find difficulties in getting bank loans,? he said.
Sukrisno said in that in the January-September 2015 period, revenue increased by 13.27 percent to Rp 5.15 trillion year-on-year. Cost of revenue, however, also increased to Rp 4.63 trillion from Rp 3.3 trillion in the corresponding nine-month period of last year.
Editing by Reiner Simanjuntak