Search This Bitch

Loading...

AddThis?

Share |

Monday, May 24, 2010

Charoen allocates US$70 million capital expenditure

Wednesday, 19/05/2010 00:00 WIB

Charoen allocates US$70 million capital expenditure

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: PT Charoen Pokphand Indonesia Tbk allocates US$70 million capital expenditure (capex) to boslter the production or aobut IDr636.61 billion (US$1=IDR9.094).

President Director of Charoen Pokphand Thomas Effendi said some 40 percent of the fund is allotted to develop and maintain the new plant here.

"The US$20 million is to build processing plant for poultry food this year. The rest (from the total allotment of US$28 milion) will be used for the new plant equipment and maintenance," he said in public expose yesterday.

Currently the company has studied some proper locations to build the plants in Java.

The new plant will have 500 million tons capacity and the company predicts the number of corporate capacity could grow from 4,500 million tons into 5,000 million tons in 2012 when the plant is accomplished.

Besides, the company also allocates 25 percent of the capital expenditure for the breeding farm, 25 percent for expansion of food processing business, and the other 10 percent is for the development of chicken feeder mill and feather processing plant for the chicken food.

The company will use internal cash and unexecuted bank loans. In 2008, Thomas said the company had IDR2.7 trillion loans. But last year the company could cut the figure down into IDR900 billion. The rest of the loan facility has not been executed yet.

In the AGMS yesterday, the company decided to share 40 percent dividend of the IDR1.61 trillion net profits last year ot eotyh IFT645.08 billion. the shared dividend is IDR196 per share unit. Last year the company did not share any dividend in 2008 book year.

The net profit of the company sharply jumped by 535 percent as from IDR257 billion in 2008 due to the exchange rate spread profit. without exchange rate here, the company booked the soaring profit by 255 percent from IDR500 billion in 2008 into IDR1.4 trillion last year.

The net profit rise here was driven by the falling corn raw material price so the imported poultry food could be minimized.

"In addition to the soaring net profit due to the commodity price drop in general, the incoming investment in Indonesia becomes lower and even far lower due to the exchange rate spread."

The company is targeted to increase the revenue this year by 12.8 percent and net profit target is to grow by 14 percent without calculating the exchange rate spread. (Bisnis/iaa)

0 comments:

Followers

Bisnis Online Free Automatic Backlink Investing Blogs - BlogCatalog Blog Directory