CMNP eyes 15 percent growth in profit in 2005

CMNP eyes 15 percent growth in profit in 2005

The Jakarta Post, Jakarta

As vehicular traffic is likely to grow by 2.9 percent this year,
combined with planned toll road price hikes, toll road operator
and builder PT Citra Marga Nusaphala Persada (CMNP) is projecting
a 15 percent growth in net profit.

"A toll hike will contribute to the increase of the firm's
revenue from Rp 414 billion last year to Rp 440 billion this
year, thus raising its net profit to Rp 100 billion," CMNP
finance director I Ketut Mardjana told reporters on Monday.

In 2004, the company booked a net profit of Rp 87 billion, a
decline from Rp 123 billion in 2003.

"We hope that the government will be consistent in applying
Law No. 38/2004 which stipulates that there should be a toll
increase every two years," he said adding that the last hike was
made in June 2003.

If approved, the company expected an increase of an average of
Rp 500, depending on this year's inflation rate, he said.

CMNP's profit slide last year was partly due to foreign
exchange burdens resulting from its dollar-denominated debts. He
said that to reduce the burdens, the company planned in May to
issue bonds worth Rp 400 billion, of which 40 percent would be
allocated to refinance those debts.

"With the refinancing, we hope to save 3 percent to 4 percent
from debt interest," CMNP president director Daddy Hariadi said,
adding that currently the company's total debt, dollar and rupiah
combined, was valued at some Rp 300 billion.

The remaining 60 percent of the bond proceeds would be used to
finance several toll projects, which were now under construction
and in the tender process.

"We have to provide Rp 68 billion to our subsidiary PT Citra
Margatama Surabaya, which is constructing the 12-kilometer Waru-
Juanda toll road project in Surabaya," said Mardjana, adding that
the rest of the money would be earmarked for the development of
the 18.2-kilometer Depok-Antasari project and the 14-kilometer
Cinere-Jagorawi project, assuming the company has a winning bid.

Currently, the company is among 18 consortia who have passed
the pre-qualification phase for the two projects.

CMNP would issue the bonds in three series, differing in
maturity periods and interest rates.

The company has appointed PT Bhakti Securities as underwriter
and is scheduled to launch the offer on May 9.

The issuance of Rp 400 billion of A-rated bonds in May would
be followed by the issuance of another Rp 400 billion by the end
of this year.

The company, formerly controlled by former president
Soeharto's eldest daughter, Siti Hardiyanti Rukmana, is now 64.65
percent owned by the public and 17.79 percent by state-owned toll
road operator PT Jasa Marga.(003)