Moody's Investors Service has affirmed Indonesian coal miner, PT United Tractors Tbk (IDX: UNTR)' Baa2 issuer rating - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian heavy equipment provider, PT United Tractors Tbk (IDX: UNTR) will distribute interim dividends with total amount Rp1.52 trillion (US$107.80 million) or Rp408 a share in this month, said the company on Monday (09/30). This value is equivalent to 27.28 percent of the net profit in the first semester of 2019 worth of Rp5.57 trillion.

During 2016 until 2018, the value of the company interim dividends tended to be fluctuated. In 2018, the value was recorded Rp365 per share. Previously, in 2017 and 2016, the value is Rp282 and 143 per share, respectively.

This year, an Astra International Group subsidiary, prepared $800 million in capital expenditure  to develop its business lines, including the purchase of new heavy equipment owned by its unit PT Pamapersada Nusantara. The company targets to buy 4,000 units of heavy equipment.  The remaining will be used to manage other lines of business in the field of construction and energy.

In the first semester (1H) of 2019, United Tractors pocketed a net profit of Rp5.57 trillion, slightly up 1.82 percent compared to Rp5.47 trillion as of 30 June 2018. Net income recorded Rp43.31 trillion or rose 11.22 percent from Rp 38.94 trillion in the same period of last year.

As for heavy equipment sales through Komatsu products, there were 1,917 units in the first semester of 2019. The number is down 20.13 percent from 2,400 units in the same period last year.

In the first semester of 2019, the largest contribution of the company’s heavy equipment sales was from  mining sector by 47 percent. However, that position dropped from 55 percent in the first semester of 2018. The second largest sales contribution was in the construction sector, that contributed 27 percent to the total heavy equipment sales.

The miner also had given fresh loans of Rp2.4 trillion to its unit PT Acset Indonusa Tbk (IDX: ACST). So far the company has lend Rp4 trillion to its unit.

The two companies had signed a change to the shareholder loan agreement on August 19. It said, the construction company will use the additional funds for working capital will be used to finance the construction and infrastructure projects.

Since the transaction exceeds 50 percent of Acset Indonusa’ equity the company needs to raise approval from its shareholders. Acset Indonusa will conduct an extraordinary shareholders meeting Sept. 27.

As a group, this year, Astra International prepared capital expenditure around Rp27 trillion from last year Rp40 trillion. Part of it will spend on the digital business, said the president director Prijono Sugiharto.

The conglomeration company has entered the digital business by investing in the ride-hailing provider GOJEK. The publicly listed has invested amounting to $250 million at the unicorn.

Talking on its core business, Sugiharto expects by the end of this year the company market shares in car sales could stay at 50 percent from now 53 percent of total national sales. The tight competition among the car manufacturer become the reason for the declining of the company market shares, he adds.

He sees the national car sales around 1.05 million units or dropped 10 percent compared to last year and for export market 200,000 units. Then the motorcycle sales are estimating the same with last year around 6.3 million units and heavy equipment sales will be dropped 20 percent to 3,600 units compared to last year

But he believed that the Indonesian market still prospective for four and two-wheels vehicle. He stated, “Car sales are still prospective and will prepare investment for it.”

In other sectors, Sugiharto said, the manufacturer will continue looking infrastructure projects and other potential business. In toll project, he claimed, Astra would manage 1,200 kilometers of toll road across the nation manage by PT Astra Infra.

Two toll road projects, Kunciran – Serpong toll road in Jakarta area and Surabaya – Moncokerto in East Java will operate. While United Tractors’ power plant project joined with Japan’ Sumitomo Corp. and Kansai Electric Power Co. Inc. with total capacity 1,200 megawatts will operate soon.

Sugiharto believed the new businesses will support its financial performance in the future. in the first half of 2019, the company profit dropped six percent to Rp10.38 trillion from prior year amid the lower commodity price, coal, heavy equipment, and car sales.

US$1: Rp14,100

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