0 Adhi Karya Profit Jumps 16% to Rp 212b

State construction company Adhi Karya reported an increase in profit last year, due in part to a rise in construction contracts and development projects related to the country’s infrastructure. Kiswodarmawan, president director of Adhi Karya, said unaudited profit for the Jakarta-based company rose 16 percent to Rp 212 billion ($21.2 million) last year, from Rp 182 billion in 2011. Revenue increased nearly 14 percent to Rp 7.6 trillion last year, from Rp 6.7 trillion in 2011. 

Kiswodarmawan said Adhi Karya’s engineering, procurement and construction division contributed about Rp 130 billion in profit for the company. The remainder came from its property and real estate business. The president director said revenue at the company is expected to grow this year, with more construction works in the pipeline. Projects include the Gempol toll road in Surabaya, East Java, and expansion plans for Soekarno-Hatta International Airport, servicing Jakarta. 

Revenue is expected to increase to Rp 13.3 trillion this year. The company has set aside up to Rp 747 billion for capital expenditure this year. To finance the investment, Adhi Karya plans to sell Rp 750 billion in bonds this year. The company has not yet set the terms of the bond sale. Indonesian companies are selling bonds to capitalize on the country’s low borrowing costs. The central bank kept its benchmark interest rate at 5.75 percent, a record low, last week.

source : the jakarta globe