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)