PT Intraco Penta back in the black

JAKARTA (JP): PT Intraco Penta Tbk announced on Wednesday a net profit of Rp 28.16 billion (US$3.75 million) in the first semester of 1999. This is in contrast to a Rp 280.35 billion loss for a previous semester last year.

The publicly-listed heavy equipment and spare parts company said that the sudden change of fortune came largely after it successfully restructured its debts.

Intraco Penta's advisor Fred L. Manibog said the restructurization saved the company $1.5 million in interest payments and cut foreign exchange exposure by $11.3 million.

In May, the company reached an agreement with foreign and local creditors to restructure its $44.2 million debt.

Two creditors accepted a 60 percent debt reduction, worth $3.1 million. Twelve others extended the repayment periods to five years, including a two-year grace.

The stronger rupiah over the past year led to a Rp 16.8 billion foreign exchange gain during the first six months, compared to a Rp 334.9 billion loss in the same period of 1998, Manibog said.

The company, which lost Rp 15.44 billion in the whole of 1998, is now looking forward to a modest profit for the whole year.

"With a conservative management approach, we are only targeting a net profit of Rp 38.98 billion this year," Manibog said.

Sales revenue increased by 10 percent in the first semester to Rp 113.43 billion largely because of higher sales of spare parts, which rose 51 percent, rather than heavy equipment, which dropped 39 percent.

"Volvo products still dominated our selling activities," Manibog said, noting that Volvo accounts for 90 percent of Indonesia's articulated dump truck market.

Finance Director Petrus Halim said the company sold 38 units of heavy equipments in the first six months of 1999, compared to 43 units in the whole 1998 and 339 units in 1997.

Intraco Penta's main competitors in the Indonesian market for heavy equipments include PT United Tractor, PT Trakindo Utama, and PT Hexindo Adiperkasa.

The company, with total assets of Rp 376.51 billion as of June 1999, expanded rather than downsized its operation during the crisis with new branches in Medan, Ujungpandang and Pekanbaru, Petrus said.

Petrus foresaw growth in demand for heavy equipment next year, coming mainly from mining and timber companies. "Mining is the only sector not affected by the crisis," he said.

Intraco Penta also rented some 30 units of heavy equipments worth $4 million, he said.

The company has 700 employees working in 16 branches, four dealers, four workshops and nine consignment sites.

Intraco Penta, listed on the Jakarta Stock Exchange since 1993, is owned by PT Shalumindo Investama (36.58 percent), PT Spallindo Adilong (29.46 percent), Alamsyah Halim (6.47 percent), and PT Malinda Graha (3.79 percent). The remaining 23.70 percent is owned by the public. Its stock traded at Rp 900 on Wednesday, compared to Rp 100 a year ago. (02)