Semen Gresik revenue up 12 percent
The Jakarta Post, Jakarta - 20/10/2011
State cement producer PT Semen Gresik Tbk. recorded a 10 to 12 percent increase in total revenue in the first nine months of this year compared to the same period last year, a top executive said on Wednesday.
Semen Gresik president director Dwi Soetjipto, before the company’s extraordinary shareholders general meeting, declined to give exact figure, saying it would be announced next week.
The firm booked revenues of Rp 10.29 trillion (US$1.16 billion) in the first three quarters of 2010. A 10 to 12 percent increase in the same period this year will result in revenue between Rp 11.31 trillion and Rp 11.52 trillion.
Dwi also said that Semen Gresik booked a 10 percent increase in domestic sales as of September 2011 compared to the same period last year. The company booked 14.37 million tons in the third quarter of 2010.
Semen Gresik, Dwi said, estimated a 5 to 10 percent increase in net profits. The firm recorded Rp 2.52 trillion of net profits in the same period last year leading to possible profits in the range of Rp 2.64 trillion to Rp 2.77 trillion in the first nine months of this year.
Dwi admitted that surging production costs, particularly due to rising prices for coal and electricity, caused the slight increase in net profits.
“I think the production costs will increase about 5 to 10 percent. Meanwhile, we cannot increase cement prices. If we increase the price and our competitors maintain their current price, we will lose our market share, which is about 43 percent,” Dwi said.
“We’re keeping the operation stable and at maximum capacity. Moreover, we use alternative fuels to the maximum extent as possible.”
Dwi said that Semen Gresik’s production reached 14.5 million tons in the first nine months of 2011. The company previously has reported its production was 12.8 million tons in the same period in 2010.
“We target production of 19.5 million tons by the end of this year. We will likely exceed the number,” Dwi said.