PP Presisi Targets to Achieve Contracts Up to Rp 8 Trilion in 2018
JAKARTA - PT PP Presisi Tbk ("Company", "PPRE"), Indonesia's leading heavy equipment-based construction company, posted new contracts throughout 2017 of Rp 5,9 trillion, or 102% of its new 2017 contract target of Rp5,8 Trillion.
Achievements above those targets encouraged the Company to target new contracts of 2018 up to Rp 8.0 trillion or increase 35%.
The Company is very optimistic to achieve the target, where at the beginning of 2018, the subsidiary, PT Lancarjaya Mandiri Abadi ("LMA") has managed to pocket a three-year coal hauling service contract with PT Barasentosa Lestari, a coal mining company operating in Sumatra South.
"With the acquisition of this contract, it means that LMA within one year has obtained 2 (two) contracts of coal hauling service," said Benny Pidakso, Finance Director of the Company in the official press release (17/1/2018).
More details Benny Pidakso added, "To support this work, the Company will increase the number of heavy equipment fleets with financing from the IPO proceeds, internal and external funds if needed."
Benny explained that the income from coal hauling service is recurring income and longer-term services compared to the average period of infrastructure projects in the next 2 years will help to diversify revenues and strengthen the Company's profit growth in the future.
"Revenue from coal hauling services is expected to contribute revenues ranging from 10% to 15% by 2018 as the Company expects 1 additional coal hauling contract," conclude Benny.