Jakarta. Net profit at state-controlled construction firm PP, commonly known as PTPP, surged in the first half of the year, backed by a series of of new infrastructure projects from the government.
In a listing on the local stock exchange on Monday, the publicly-listed company reported a 34 percent increase in net profit to some Rp 200 billion ($14.72 million) in the January-June period this year compared to Rp 149 billion in the same months last year.
"The increase was contributed by all of the company's business units," PTPP president director Bambang Triwibowo said in a statement. "Other than that, this is also the fruit of our efficiency and innovation program."
PTPP's revenue grew 13 percent to Rp 5.2 trillion, while cost of revenue rose by 10 percent to Rp 4.5 trillion.
The contractor booked up to Rp 15 trillion worth of new contracts as of July, leading to about Rp 44 trillion of total contracts. It has achieved more than half of its 2015 target of new contracts at Rp 25 trillion.
At least 23 percent of the company's new contracts are infrastructure projects, including a Rp 1.6 trillion gas-powered power plant, a Rp 417 billion toll road in Central Java and a Rp 898 billion port in North Sumatra.
PTPP also benefited from the positive performance of its subsidiaries, such as newly-listed property developer PP Property and PP Pracetak, its pre-cast concrete unit.
"To maintain the growth, we''ve been scheduled to receive a capital injection from the government next year, where we will issue shares in a rights issuance," he said.
"With the increase in equity, we will prioritize in power plants, ports and toll roads."
PTPP is among the state-owned enterprises slated to receive a capital injection next year as part of the government's strategy to include SOEs in the nation's infrastructure development plans.
The state contractor will be allotted Rp 2 trillion in capital injection next year.
Other state construction firm set to receive a capital injection include Hutama Karya and Wijaya Karya, which will be given Rp 3 trillion each.