Cement maker PT Semen Gresik said its net profit in 2007 rose 37.04% to Rp1.8 trillion ($196 million) from a year earlier on higher demand for its product, Asia Pulse reported Tuesday (25/3/08).
Sales rose 10% to Rp9.601 trillion, PT Semen Gresik president director Dwi Soetjipto said.
He said Semen Gresik had set itself the target of raising its domestic sales by 6% this year.
"The company now holds a 44.2% share of the national cement market. We hope we can at least maintain our present market share this year," he said.
He said the company was planning to raise its annual production capacity to 17.87 million tons this year from 17.1 million tons previously. "In 2009, we will increase the production capacity to 18.5 million tons a year."
The country's cement industries now had an annual production capacity of about 47 million tons while its annual cement consumption was estimated at 36 million tons, he said.
Meanwhile Dow Jones Newswires reported that Gresik has been meeting investors to gauge their appetite for a high-yield bond.
It quoted people familiar with the situation as saying that the company is keen to raise up to $500 million to help finance construction of cement and power plants, and it has tapped JPMorgan Chase & Co. to sell the planned bond.
Earlier, Standard & Poor's Ratings Services assigned a BB foreign and local currency corporate credit rating on Semen Gresik.