Thu, 05 Oct 2000

Toll operator CMNP projects $10m profit

JAKARTA (JP): Publicly listed toll road operator PT Cipta Marga Nusaphala Persada (CMNP) projects a net profit of Rp 88 billion (US$10 million) this year, after suffering a net loss of Rp 117 billion last year, according to the company's finance director.

CMNP finance director Ilham Wardhana said on Wednesday the profit would come mainly from increased traffic on the toll roads and lower operational costs.

"Foreign exchange gains might also contribute," Ilham told reporters following the company's extraordinary shareholders meeting on Wednesday.

The company suffered heavy foreign exchange losses on its loan interest payments, leading to a loss of Rp 298.9 billion in 1998 and Rp 117.4 billion in 1999.

Ilham said that this year's net profit projection assumed an exchange rate of around Rp 8,600 to the dollar.

CMNP, he said, had debts of $116.8 million in Eurobonds and floating rate notes (FRNs), and another Rp 224 billion in local bonds. The floating rate notes are due in 2002 and the bonds in 2004, he said.

CMNP's chief commissioner Deddy Hariadi said that although the company was forecasting profits, shareholders wanted to see an improvement in its management.

Wednesday's shareholders meeting was held to approve a proposal to replace CMNP's board of directors and commissioners.

Deddy said the proposal came from CMNP's main shareholders: the state owned toll road regulator PT Jasa Marga with a 17.1 percent stake, and the publicly listed mass transportation company PT Steady Safe and its affiliate PT Steady Safe Finance, with a combined ownership of 14.2 percent.

"The reason for the proposal is to improve the company's performance in the future ... our shareholders want dividend payments, they want to see sustainable profits," Teddy explained.

He added that over 80 percent of the shareholders present during the meeting, had voted to replace the management.

CMNP's current board of directors has Siti Hardiyanti Rukmana known as Tutut, the eldest child of former President Soeharto, as the company president.

Others include Bambang Soeroso and Teddy Kharsadi, while Adityawarman, Djodjo Subagja, Mohammad Jusuf Hamka and Markus Permadi are members of CMNP's board of commissioners.

Deddy admitted that some shareholders had specifically asked for the replacement of Siti Hardiyanti, though some others disagreed.

"We haven't decided yet, whom we are going to replace and from where the replacement would come," he explained.

The replacement was also due to CMNP's declining share prices, he said, but refused to comment on whether it was because of Tutut's presence in the company.

Deddy also blamed negative media coverage to have pushed CMNP's share prices down.

Deddy also blamed the decline in CMNP's share prices on negative media coverage.

He was referring to reports on alleged transactions in commercial papers with affiliated companies that had cost CMNP some Rp 155.9 billion in losses.

At the company's annual shareholders meeting in June, CMNP decided to conduct a special audit on these transactions, which Deddy expects to be completed by Dec.15, this year.

CMNP is also 11.01 percent owned by the Purna Bhakti Pertiwi Foundation and 2.9 percent by PT Citra Lamtoro Gung Persada, which itself is owned by Tutut. The public has a 37.56 percent stake.

Purna Bhakti Pertiwi Foundation owns a 11.01 percent share and PT Citra Lamtoro Gung Persada 2.9 percent which itself is owned by Tutut. (bkm)