PT Semen Gresik's third quarter net profit plunged 9.2 percent
The Jakarta Post, Jakarta
Publicly-listed PT Semen Gresik (Persero) Tbk. stated on Thursday that its consolidated net profit plunged 9.2 percent to Rp 266.93 billion (US$29.69 million) during the first nine months of this year, from Rp 294.01 billion in the same period in 2002.
It claimed he decrease was caused by higher costs of sales after the government hiked electricity tariffs and fuel prices early this year.
The company's cement sales volume also fell 5.6 percent to 10.401 million metric tons due to a drop in its domestic sales and exports.
Its domestic sales dropped by about 0.5 percent to 8.851 million tons at the third quarter this year from 8.899 million tons reached at the corresponding period last year.
Exports fell even more significantly, by about 27 percent, to 1,550 million tons from 2.113 million tons a year ago.
SG is 51 percent owned by the government, while 25.50 percent is owned by Mexico's cement giant, Cemex S.A. de C.V., and the remainder 23.50 percent owned by the investing public.
The company owns three cement units: SG in Central Java, Semen Padang in West Sumatra and Semen Tonasa in South Sulawesi.
For several years, SG could not control Semen Padang because its former management demanded the firm be spun off from SG. SG could only take over the management in the middle of this year with the help of police.
SG's president Satriyo earlier said SG's third quarter financial report was based on the assumption of zero profit at Semen Padang.
"It is hard for us to define the exact number (SG profit) as Semen Padang has yet to close their financial report. We could only assume a zero profit at Semen Padang," Satriyo said, adding that Semen Padang's financial report was expected to be completed by mid-February 2004.
He also said the financial deficit of Semen Padang could reach about Rp 200 billion by the end of the year.
However, according to him, SG's net profit could increase by between 8 percent and 10 percent next year despite the coming general election, with assumptions the Semen Padang problems would soon be resolved.