Nov 12, 2010

Gozco eyeing Rp150 bio profit in 2010

Palm oil player PT Gozco Plantations Tbk is eyeing Rp180 billion net income next year, a 20% rise from the target of Rp150 billion by the end of this year.
The net income target this year is 26.60% lower than Gozco's realized last year of Rp204.38 billion.
Director of Gozco Plantations Kreisna Dewantara Gozali said his company also expects a revenue jump as much as Rp425 billion by the end of this year.
Adding to that, he is optimistic that such target is achievable following the possible increase of its core plantation production volume from its production in the 9H/2010.
“Most of our plantations are the core plantations while only few of our plasma plantations that booked a decline in its production,” he said to the press yesterday.
Furthermore, Gozco Plantations also sets Rp250 billion capital expenditure next year merely to foster the maintenance cost of some plants that immature plantation on the 12,400 hectare area.
The capex shall also be used to open the 5,500 hectare new land, construct crude palm oil plant with 45 ton per hour capacity and to build a port in South Sulawesi.
By such port construction, as he explained, Gozco may save the shipping cost as much as 50% from the cost of using trucks as well as transport 2,000 ton of CPO in a single shipping.
Nonetheless, the port construction will not trigger the company to significantly increase its production since the land planted in the Golden Blossom area only reaches 3,000 hectare.
Gozco recorded Rp291 billion revenue during the Q3/2010 or declined compared to the same period last year, amounting Rp305 billion. The company’s net income also slipped from Rp127 billion in the Q3/2009 to IDR100 billion in the Q3/2010.

Disclosure: No position at the stock mentioned above. 

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