Citra Tubindo expects strong 1998 earnings

Citra Tubindo expects strong 1998 earnings

BATAM, Indonesia (Reuters): Indonesian oil and gas pipeline manufacturer PT Citra Tubindo expects to post strong results in 1998 and 1997 earnings to more than double, company president Kris Wiluan said yesterday.

"We expect continued growth in 1998. Production volume is going up," he told Reuters at a ceremony to mark the export of 15,000 tonnes of steel tubes.

Wiluan said the company's pre-tax 1997 profit was expected to more than double over 1996 due to the substantial fall in the value of the rupiah against the dollar.

"Our income is in U.S dollars, and its been good because our expenses are in rupiah," he said.

The value of the Indonesian rupiah has plummeted by around 75 percent since the financial crisis engulfing Southeast Asia began last July.

Wiluan said the company was looking to raise its steel pipeline exports to 40,000 tons in 1998 compared to a cumulative export of 45,000 tons since the middle of 1996.

He said it was having great success in its export expansion plans due to a strategic alliance with Nippon Steel Corp and Nissho Iwai Corp.

Citra Tubindo buys its steel and obtains technical backing from Nippon Steel while Nissho Iwai provides financial support and marketing expertise to the alliance.

As a result, the company has expanded its market to include Venezuela, Australia, Canada and Bangladesh as well as leading oil companies such as Royal Dutch Shell, Mobil Oil, Exxon Corp and Unocal, Wiluan said.