Benakat targets doubling in revenues after acquiring Astrindo | Company data
(Insider Stories) - Integrated energy company PT Benakat Petroleum Energy (BIPI.JK) expect revenues will double from over US$200 million to around US$400 million by 2014 after completed a US$600 million acquisition of coal infrastructure company PT Astrindo Mahakarya Indonesia. Net profit will rise sevenfold from US$8.88 million to US$70 million.
Michael Wong, finance director of Benakat, said Astrindo will contribute 75 to 80% to total revenues of the company in 2013 and 2014.
Muhammad Suluhuddin Noor, the president director Astrindo acqusition give a significant impact because has signed long-term contracts with several major coal players nationwide with fixed prices. In 2013, He said, revenue will reach IDR2.2 trillion or rises five times from last year IDR357 billion.
Astrindo currently has integrated coal mining infrastructure assets including coal port capacity of 48 million metric tons per year and overland conveyor belts with a capacity of 75.3 million tons per year. Its unit, two coal mining PT Mitratama Perkasa and PT Nusa Tambang Pratama, produce a combined 70 million tons of coal per year. The production capacity of the two units is expected to increase to 80 million tons per year in the coming years, Suluhuddin said.
Funding for the acquisition drawn from PT Benakat Patina share sales to the Florenceville company for US$105 million, loan facilities US$397 million from Credit Suisse Singapore, RZB Bank, Poseidon, and PT Ciptadana Sekuritas and from generated internal cash.
Benakat has 37.67% shares of PT Elnusa (ELSA.JK), ,integrated oil & gas services company, 10.30% shars of PT Buana Listya Tama (BULL.JK), petro chemical shipping company, 99.99% shares of PT Benakat Oil and PT Benakat Mining.
