PT Waskita Karya Tbk (IDX: WSKT) eyes a new contract Rp71 trillion (US$4.49 billion) from foreign markets over the next five years - Photo by the Company

JAKARTA (TheInsiderStories) – State construction firm, PT Waskita Karya Tbk (IDX: WSKT) eyes a new contract Rp71 trillion (US$4.49 billion) from foreign markets over the next five years, said the CEO. Most of the projects was estimated come from infrastructure projects in Southeast and South Asia.

“After the pandemic, we hope that many countries will resume their infrastructure development activities,” the CEO, Destiawan Soewardjono, explained during a webinar on Thursday (04/08).

He estimated that railways, light rail transit (LRT) projects, road, and regional and airport development from Southeast and South Asia could be worth Rp 34 trillion. From the Middle East market around Rp20 trillion from airport, building, area development and pipeline projects. And, the form Africa amounting to Rp17 trillion from railways and LRT, transmission, pipelines, and regional development.

Previously, the state-owned company has build King Faisal Specialist Hospital, Research Center, Deck Slab Elevated Road Bridges, King Abdul Azis International Airports in Jeddah, Saudi Arabia. In Timor Leste, the constructor was develop Suai Airport and the construction of roads and bridges.

Beside looking foreign market, Waskita also very aggressively to divest its toll roads in the last five years to refinance the company’ debt. Soewardjono admitted, now the company under a high debt interest burden plus recorded a loss of Rp7.28 trillion in 2020, the opposite from the previous year posted a net profit of Rp872 billion. This condition is exacerbated by a liability of Rp89.01 trillion and a debt interest expense of Rp4.7 trillion.

In this year, the builder is pursuing to sell nine toll roads to reduce the financial burden significantly. The issuer also discusses with the Indonesia Investment Authority to divests several sections to the sovereign wealth fund body.

Recently, the unit, PT Waskita Toll Road has agreed to divest a 30 percent stake in the Medan – Kualanamu – Tebing Tinggi toll road to Hong Kong-based investor, Kings Ring Limited for Rp824 billion. Finance director, Taufik Hendra Kusuma, added that if the divestment goes well the company will be able to reduce the debt burden up to Rp20 trillion. Waskita is also seeking to restructure the existing loans with banks in order to improve financial performance.

The pressure from the pandemic on the performance of state-owned construction companies was still quite large until the end of last year. Other constructor, PT Wijaya Karya Tbk (IDX: WIKA) announced that revenues had fallen by 39.23 percent to Rp16.54 trillion and net profit fell 91.87 percent to Rp185.77 billion.

Just like the parent, PT Wijaya Karya Bangunan Gedung Tbk (IDX: WEGE)’ net profit also decreased 66.06 percent to Rp153.28 billion in annual basis and the revenues declined 38.47 percent to Rp2.81 trillion. The other unit, PT WIKA Beton Tbk (IDX: WTON), aldo fell 75 percent from Rp795 billion to Rp184 billion and the net income decreased by 32 percent from Rp7.08 trillion to Rp4.8 trillion.

Other constructor, PT PP Tbk (IDX: PTPP)’ net profit also plunged 84.28 percent on an annual basis tp Rp15.83 trillion and the net profit dropped to Rp128.75 billion from a year ago Rp819.46 billion. Then, the toll road operator, PT Jasa Marga Tbk (IDX: JSMR) reported the net profit fell 77.3 percent to Rp501.05 as of Dec. 31, 2020 from the previous year of Rp2.20 trillion.

The net revenues by 47.98 percent to Rp13.70 trillion from 2019 of Rp26.34 trillion. While, PT Adhi Karya Tbk (IDX: ADHI) has not released the 2020 financial report.

US$1: Rp14,500

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