PLN posts net profit of US$431 million

JAKARTA (JP): The state-owned electricity company PT PLN has booked a net profit of Rp 1 trillion (US$431.03 million) for 1996, up about 15 percent on the previous year.

Speaking at a fast breaking ceremony on Wednesday night, PLN president Djiteng Marsoedi said that his company's sales of electricity had risen 17 percent to Rp 9.7 trillion last year.

He said that sales were expected to reach Rp 11 trillion this year, but net profit would hover around last year's level of Rp 1 trillion.

"The target is still reasonable because this year the company will see an increase in its production costs -- partly due to the development of electricity in rural areas," he said.

Djiteng said the company had delayed its plan to go public until later this year.

The state company had planned to list its two subsidiaries, Pembangkit Jawa Bali I and II, on local stock exchanges in the middle of this year.

He refused to comment when he was asked if the delay was caused by the company's lack of preparations.

Asked about the number of shares to be listed, he said, "We haven't yet decided. But our financial advisers will make a study and make their own suggestions to us."

He said that PLN had signed a contract with a consortium of financial advisers including Danareksa, Bahana, Makindo and Badjra Graha for the initial public offering.

PLN would soon sign a contract for legal advisers and underwriters, he said.

Djiteng noted that obstacles facing PLN included a lack of funds and land problems. (bnt)