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Thursday, July 1, 2010

Cooperation Between Darma Henwa and Buma Continues

Monday, 28/06/2010 00:00 WIB

Cooperation Between Darma Henwa and Buma Continues

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: Mining contractor PT Darma Henwa Plc (Tbk) gets approval from the creditors to continue with their cooperation with PT Bukit Makmur Mandiri Utama (Buma).

The project is worth a total US$1.8 billion with the term of contract running from 2004 to 2014.

"We have got approval from the creditors. The project only needs to wait for documentation finalization, which is expected to start in the third quarter of 2010," informed Corporate Secretary of Darma Henwa Wiria Widodo in Jakarta last weekend.

The partnership contract of the Bakrie group-affiliated company covers the company's subcontractor's contract in the coal mining location of PT Kaltim Prima Coal, a subsidiary of another Bakrie Group-owned subsidiary PT Bumi Resources Plc, in Bengalon, East Kalimantan.

Record by Bisnis showed the cooperation with Bukit Makmur had been discussed since earlier this year and was targeted to be completed in February. However, the process could only be completed right now.

Darma Henwa's financial statement showed the company owed two banks, UOB and ABN Amro Bank NV, US$120 million last year. Previously, the banks permitted Darma Henwa to conduct rights issue earlier this year.

Some of the IDR624 billion funds raised by the company from the rights issue have been used to service liabilities, reducing the amount of debt to US$75 million.

Wiria explained the company still hoped for new contractor projects this year, but it would still focus on the Bumi Resources project in Bengalon and another project in Asam in the Regency of Laut, South Kalimantan, owned by PT Arutmin Indonesia.

He added the company was optimistic the company's production volume could incease this year, bolstering net profit this year.

However, he could not yet explain the targets set by the company this year as well as measures the company would take to minimize its loss.

Last year, the company booked US$201.46 million in total revenues and US$1.84 million in net loss. In the first quarter of 2010, the company booked US$44.78 million in revenues and US$3.49 million in net loss.

Darma Henwa stock price yesterday was closed stagnant at IDR79 per share, creating a market cap of IDR1.72 trillion. So far this year, the company's stock has booked a negative return of 35.8%. (Bisnis/iaa)

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