JAKARTA (TheInsiderStories) - Cement producer, PT Indocement Tunggal Prakarsa Tbk (IDX: INTP) will distributes an interim dividend amounting to Rp828.27 billion (US$58.74 million) or equivalent to Rp 225 per share, said the company today. The company has schedule to pay the dividend on Dec. 18.
As reported by the issuer, in the first nine month of this year, has posted a net profit Rp1.11 trillion, rose 5.02 percent compared to same period in 2019. But the revenue weakened 10.56 percent to Rp10.14 trillion from a year ago worth of Rp11.34 trillion.
Caused of the low demand during the COVID-19 pandemic, Indocement has cut this year’ capital expenditure from Rp1.4 trillion to Rp1.1 trillion. Data from the Indonesian Cement Association showed that national cement consumption in the first semester of 2020 has decreased by 4.19 percent compared to the previous year.
To reduce the operating costs, the company also plans to close some of its factory operations and cut the top management’ salaries by 20 percent. The Salim Group’ unit estimated that national cement sales will contract 7 percent in this year due to falling demand during the pandemic.
The association also reported that domestic consumption dropped by 4.91 percent to 14.9 MT of cement and exports fell 2.46 percent to 1.39 MT of cement. Its also reported that total national output fell 4.71 percent to 16.29 MT of cement in 1Q 2020 from the same period last year of 17.09 MT of cement.
In the same period the manufacturer’ market share remained relatively stable at 26.1 percent with positive growth in key markets such as Java from 34.0 percent to 35.2 percent and Sumatra from 11.3 percent to 12.0 percent. However, from the revenue side there was a 9.9 percent decrease from Rp3.73 trillion to Rp3.36 trillion. However, net profit increased slightly by 0.9 percent from Rp396.9 billion to Rp400.4 billion.
So far, Indocement has stopped the production of seven factories operating in Cirebon and Citeureup, West Java. The company currently operates 13 factories located throughout Indonesia with a total production capacity of 24.9 MT of cement.
The cement industry in Indonesia is currently facing an oversupply period. Based on data from the public works and public housing ministry, the national cement industry is oversupplied by 37 percent or 40.9 MT of cement from the needs of 59.21 MT of cement for infrastructure development in 2020.
Entering the 2020 – 2024 National Medium-Term Development Plan, infrastructure development remains a priority for the government. Evidenced by the total funding needs for infrastructure reached Rp2,058 trillion for the period.
US$1: Rp14,100
Written by Editorial Staff, Email: theinsiderstories@gmail.com
