Semen Gresik projects to make Rp 200b profit<\/p>\n
JAKARTA (JP): PT Semen Gresik, a publicly-listed cement
\nproducer, said yesterday it had made a net profit of Rp 52.2
\nbillion (US$22 million) in the first quarter of 1996.<\/p>\n
Semen Gresik's internal operations contributed only Rp 15
\nbillion to its consolidated profit even though its production
\ncapacity is far greater than its two subsidiaries -- PT Semen
\nTonasa and PT Semen Padang -- which were acquired in August 1995.<\/p>\n
Besides Semen Tonasa and Semen Padang, Semen Gresik's
\nsubsidiaries include PT Kawasan Industri Gresik, PT Industri
\nKemasan Semen Gresik and PT United Tractors.<\/p>\n
\"I think it's normal because during the first quarter, Semen
\nGresik had to recondition its machinery,\" the company's
\npresident, Urip Timuryono, said regarding the low contribution by
\nSemen Gresik's internal operations.<\/p>\n
\"Based on the first quarter results, I'm optimistic that we
\nwill book more than Rp 200 billion in net profit this year.\"<\/p>\n
He said the profits of Semen Padang and Semen Tonasa have been
\nconsolidated since last September.<\/p>\n
\"For the fourth quarter of last year, Semen Padang and Semen
\nTonasa booked Rp 48 billion and Rp 15 billion in operational
\nrevenue respectively,\" he said.<\/p>\n
Semen Gresik's consolidated operational revenue for 1995 was
\nRp 207 billion.<\/p>\n
Urip said Semen Padang and Semen Tonasa, and the Tuban I
\ncement production unit in East Java had increased Semen Gresik's
\nconsolidated net profit to Rp 162 billion in 1995 from Rp 54
\nbillion in 1994.<\/p>\n
Semen Gresik's net sales rose by 165 percent from Rp 118
\nbillion in 1994 to Rp 820.9 billion last year, with its sales
\nvolume rising from 2.2 million tons to 3.6 million tons.<\/p>\n
Urip confirmed the company had opened a plant at Semen
\nTonasa's industrial complex in Ujungpandang, South Sulawesi, with
\na 2.3 million ton annual capacity. Commercial production at the
\nplant has been delayed until October.<\/p>\n
Semen Gresik has a total production capacity of 8.5 million
\ntons per year following its recent acquisitions.<\/p>\n
\"We will be the biggest cement producer in 1998, with a total
\nproduction capacity of 17.7 million tons after operating several
\nnew production units including Tonasa IV, Tuban II, Tuban III and
\nIndarung V, each with an annual production capacity of 2.3
\nmillion,\" Urip said.<\/p>\n
Urip estimated that Indonesia will import around one million
\ntons of cement in 1996. Last year it imported 800,000 tons.<\/p>\n
He said domestic demand for cement would reach 27.9 million
\ntons in 1996 compared to 24.7 million tons last year.<\/p>\n
Indonesia's cement factories, now with an annual capacity of
\n26.2 million tons, produced only 23.1 million tons last year. The
\ncountry's annual capacity is expected to rise to 27 million tons
\nlater this year.<\/p>\n
Urip said Semen Tonasa is allowed to export up to 500,000 tons
\nof cement each year. Destinations include Myanmar, Singapore and
\nBangladesh.<\/p>\n
Urip said the company's shareholders had approved a dividend
\nof Rp 109, totaling Rp 24 billion or 40 percent of the company's
\n1995 net profit.<\/p>\n
Commenting on the company's plan to issue bonds on the
\nLuxembourg Stock Exchange, Urip said \"it's true that we have
\nplanned to raise funds up to US$150 million from a bond issue but
\nwe may not do it if other instruments are more attractive.\"<\/p>\n
On March 15, Semen Gresik announced it wanted to issue
\nEurobonds in May 1996. It set up a finance company in Netherlands
\nto do this.<\/p>\n
\"But one thing is sure, we will not make another rights issue
\non the Jakarta Stock Exchange until the end of 1998 when
\nconstruction of our current projects is completed,\" Urip said.<\/p>\n
Semen Gresik raised Rp 1.7 trillion from a rights issue last
\nyear, most of it was used to finance the acquisitions of Semen
\nTonasa and Semen Padang. (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/semen-gresik-projects-to-make-rp-200b-profit-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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