Aug 10, 2010

SMART sets Rp1 trillion capex

PT Sinar Mas Agro Resources & Technology Tbk (SMART), the Sinar Mas Group's plantation business line, has budgeted the capital expenditure (capex) for second half of 2010 (1H 2010) amounting Rp1 trillion. Most of the fund will be used to support the planting activity.
"Our capital expenditure this year is Rp1.5 trillion while in the first half this year we have spent around Rp500 billion,” said SMART Investor Relations Pinta Sari Chandra, to this evening.
According to her, most of the fund will be derived from internal cash and the rest will be obtained from bank loan.
The company's capex spent in the first half was used for planting palm oil trees on its 1,000-ha area, establishing a refinery in Marunda Jakarta and adding the palm kernel capacity in South Kalimantan. She said that this year company targets to plant 4,500 hectare area.
Pinta also added that the company will also use the capital expenditure allocated for the second half to continue the establishment of refinery in Jakarta.
She uttered that the company targets the production of crude and processed palm oil to reach 5% above last year's production of 640,000 ton to 672,000 ton through the end of this year.
According to her, the company’s revenue and the net income in 1H/2010 were still higher compared to same period last year due to the low price of CPO early last year.
“For last year, the average CPO price was US$760 per ton while this year we predict the price to touch US$700—US$800 per ton.
The company booked Rp8.31 trillion revenue in 1H 2010, an increase of 20.57% compared to revenue in 1H/2009 in amount of Rp6.89 trillion.
The company’s net income rose by 150.71% from Rp208.88 billion to Rp523.71 billion in the same period, leaving the net income margin at 6.29%. 
Disclosure: No position at the stock mentioned above.

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