JAKARTA (TheInsiderStories) – Investment holding firm PT Saratoga Investama Sedaya Tbk (SRTG) continuous moves to invest and explore new opportunities throughout the three key sectors, namely natural resources, infrastructure and consumer, seems to be fruitful. This reflects in an overall strong first half financial results.
In the six months June 2015, Saratoga posted net profit attributable to shareholders of Rp1.2 trillion, surged 1215 from Rp 542 billion for the same period last year. The company’s revenue in the period reached Rp2.3 trillion while its net asset value was at Rp 20 trillion based on the market value of its listed investee companies, as well as the book value of non-public investee companies.
The increase in net profits was partly due to the robust results of its refining business, Tri Wahana Universal, as well as on the one-off impact as a result of reclassification in PT Merdeka Copper Gold Tbk. (MDKA) from the equity to cost method due to the dilution following Merdeka’s IPO. MDKA’s IPO last June is part confirmation of Saratoga’s business model as it invests in early stage companies, develop them and position them for further growth and development potentials.
Tri Wahana Universal (TWU) is currently the only operating privately-owned refinery in East Java with a processing capacity of 6,000 barrels of crude oil per day. TWU is currently in the process of constructing a second refinery which will increase their capacity by 10,000 barrels per day. TWU also has a license to refine crude oil as well as to store, transport, distribute and sell refined petroleum in the retail market.
In the first semester, a number of Saratoga investee companies turned in further significant growth and new acquired businesses further bolstered Saratoga’s investment portfolio
The performance is expected to continue in particular following the operation of its 116.75-kilometers Cikopo-Palimanan (Cipali) toll road prior to Idul Fitri (Jun3 13), the longest toll road in the country. The revenues from the toll road is expected to be reflected in the second half this year.
The Cikopo-Palimanan toll road contributes significant benefits to the economic sector, particularly reducing travel durations and lowering logisitic costs through the North Java Coast Road (pantura). Media reports that the 2015 homecoming (Mudik) season saw 70 percent of travelers from the greater Jakarta (Jabodetabek) area making use of the the Cipali toll road.
Saratoga said on the other hand, lower net share profit was recorded by 51.4% to Rp 244 billion this semester due to the decline income recognition from PT Adaro Energy (ADRO), PT Tower Bersama (TBIG) and PT Mitra Pinasthika Mustika (MPMX), compared to Rp 501 billion in the same period last year.
Infrastructure now accounts for 60 percent of Saratoga Investama’s portfolio with the recent milestones like the opening of the 116-km Cikopo-Palimanan tollroad on June 13, 2015 and the recent entry into Paiton Energy.
Together with PT Agung Indonesia Mandiri, Saratoga have signed an CSPA to aquire 16.67%shares of PT Batu Hitam Perkasa (BHP) on 14 July 2015. BHP holds 5 percent of shares in PT Paiton Energy, an electricity-generating company, which has secured a license to construct, own and operate a coal steam generator located at the Paiton Power Plant complex in Probolinggo Regency, East Java. Paiton operates two electricity generators: unit 7/8 and unit 3 for a total generating capacity of 2,035MW.
In the natural resources sector, Saratoga’s investee company PT Merdeka Copper Gold Tbk was successfully listed on the Indonesia Stock Exchange (IDX) on 19 June 2015. Merdeka is the first pre-producing mineral mining company successfully listed its shares on the Indonesia Stock Exchange (IDX). Merdeka shares saw an oversubscription at the upper price range, proving the high trust among investors to place their funds in the gold, silver and other mineral mining services offered by Merdeka.
Furthermore, Saratoga through its investee company PT Surya Nuansa Ceria (PT SNC) has signed a working agreement with PT Puncak Jaya Berlima to establish PT Agra Energi Indonesia to explore oil and gas. Saratoga controls up to 30 percent of shares worth US$7.5 million.
In the consumer sector, Saratoga together with its investee company PT Mitra Pinasthika Mustika Tbk. (MPM) and Golden Valley Advisors Inc. (Golden Valley) signed a Conditional Sales and Purchase Agreement (CSPA) to acquire 51 percent of PT Express Transindo Utama Tbk. (Express) shares from PT Rajawali Corpora (Rajawali) on 6 July 2015. The transaction is expected to be finalized this year.
Saratoga President Director Michael W.P. Soeryadjaya remarked that as an active investment company, Saratoga always find ways to strengthen its investment portfolio to achieve continuous growth in the long-term.
“Amid the sluggish economic climate, Saratoga continues its strategy of looking at new opportunities that offer bright prospects, strengthen the existing investments and provide maximum added value to the Company. We are confident that the strategy will allow Saratoga to positively sustain its business growth,” said Michael. (*)
Facebook
Twitter
RSS