Apr 25, 2011

Losing money won't deter Elnusa

Integrated oil and gas services company PT Elnusa Tbk (ELSA) provides its guarantee that its expansion program will not be deterred by the depletion of its cash after a Rp111 billion deposit at Bank Mega's Jababeka branch was illegally redeemed by Elnusa Finance Director Santun Nainggolan. 
The deposit at Bank Mega so far is not intended to bankroll Elnusa's operational activities and expansion program.
"The deposit is purely a cash reserve," said Elnusa Human Resources Director Lucy Sycilia as quoted by Kontan daily today.
She assured that the company still has deposits at seven different banks. "Our cash flow won't be deterred."
Elnusa has spent US$100.2 million cash for capital expenditure this year. 
However, Lucy revealed that Elnusa is striving to seek cash for reserve as security. So far, the company provides a ready cash as much as the operational cash in 3 consecutive months.

Disclosure: No position at the stock mentioned above. 

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