UT plans 20% increase in 2017 capex
Tuesday, December 27 2016 - 01:37 AM WIB
Petromindo
IDX-listed heavy equipment and coal mining firm PT United Tractors Tbk (UT) plans to increase capital expenditure (capex) in 2017 by 20 percent to US$240 million from $200 million allocated for this year.
UT President Director Gidion Hasan said that the capex will be financed via internal funds.
He said that about 80 percent of the planned 2017 capex will be allocated for its coal mining contractor subsidiary PT Pamapersada Nusantara. ?The funds will be used for the procurement of heavy equipment in coal mining,? Gidion said.
As per September 2016, UT has absorbed about $120 million of the $200 million capex allocated for the year.
UT aims to increase heavy equipment sales in 2017 by 25 percent to 2,500 units. Gidion is optimistic the sales can be achieved amid the current recovery in the price of coal.
As per November of 2016, UT has sold 2,002 units of Komatsu heavy equipment, slightly exceeding the full-year target of 2,000 units. The mining sector accounted for 27 percent of the total sales, followed by forestry sector (25%), and plantation (10%). ?Our market share throughout the year is 32 percent,? he said.
Editing by Reiner Simanjuntak