Apr 18, 2011

Garuda urged to provide dividend in 2012

Ministry of State-owned Enterprise Mustafa Abubakar urges PT Garuda Indonesia Tbk to distribute dividend in 2012 as a way to interact new investors and to please shareholders.
Mustafa hopes the aviation company could book profit this year and start distributing their dividend next year.
He is optimistic Garuda will experience a better performance amid to improvement in the global aviation sector and their extra fleets.
In 2010, Garuda booked higher revenue by 9.4% to IDR19.53 trillion from IDR17.86 trillion in 2009. However, company profit decreased 48.45% to IDR515.52 billion from IDR1.018 trillion.
“Last year loss was due to gloomy aviation industry and the company's efforts to invest,” he said.
Garuda’s Director of Finance Elisa Lumbatoruan said one of the strategies to start distributing dividend next year is by conducting quasi-reorganization.
The quasi-reorganization is an accounting procedure that organize company’s assets restructuring to eliminate deficit and re-valuating all assets and liabilities. The action is conducted by an independent institution.
Before quasi-reorganization, the company will conduct legal and financial review first and ask government approval as their major holder for the act. “We plan to have quasi-reorganization this year. We expect to distribute profit in 2014.”

Disclosure: No position at the stock mentioned above.

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