State-controlled construction firm Pembangunan Perumahan (PP) booked a 36 percent increase in net income last year on the back of strong revenue from government-backed infrastructure projects. (Antara Photo/Puspa Perwitasari)

PP's Net Income Up 36% in 2016


JANUARY 30, 2017

Jakarta. State-controlled construction firm Pembangunan Perumahan, or PP, booked a 36 percent increase in net income last year on the back of strong revenue from government-backed infrastructure projects.

PP booked to Rp 1.15 trillion (Rp 86.24 million) in net income in 2016, up from Rp 845.6 billion the previous year, the company said in filing to the Indonesia Stock Exchange on Monday (30/01).

The company also said it booked Rp 17.6 trillion in revenue last year from Rp 14.2 trillion the year before.

PP has set a revenue target of Rp 25 trillion this year, up 42 percent compared to last year, which it expects to mainly derive from new contracts.

The company has secured new contracts for construction-related work, worth Rp 4.3 trillion, as of the third week of January. It has set a target of Rp 40 trillion in new contracts this year, which will be 25 percent higher than in 2016.

"We are optimistic to achieve our target, backed by the government's aggressive plans to continue its infrastructure projects," PP president director Tumiyana said in a statement.

The company's new projects, including a Rp 1.19 trillion project involving reconstruction of the road connecting Karangnongko in Klaten district and Wangon in Banyumas district in Central Java.

It also secured a new Rp 1.5 trillion contract to develop the Cisumdawu toll road between the districts of Cileunyi and Kertajati in West Java. The toll road is aimed at improving access to Kertajati Airport.

The company also helps state electricity company Perusahaan Listrik Negara (PLN) to develop a 2x140 megawatt gas turbine power plant in Bangkanai, Central Kalimantan, worth Rp 1.7 trillion.

The company held a total of Rp 71.5 trillion in contracts last year, comprising 32.6 trillion in new contracts and Rp 39 trillion in contracts carried over from 2015.

Stock Split, Rights Issue

PP's property firm unit, PP Properti, announced on Friday last week that its shareholders approved a management plan for a "four-for-one stock split," which is set to become effective on Feb. 17.

The company also plans a rights issue to raise Rp 1.5 trillion in proceeds from the sale of new shares.

It will use the proceeds for capital expenditure and company expansion.

PP Properti president director Taufik Hidayat said the stock split is expected to boost share liquidity.

PP Properti's shares, which trade under the PPRO stock ticker, closed 1.98 percent higher at Rp 1,285 on the local bourse on Monday.