Petrosea posted 2010 2,557% risen net profit

Bursa

Irvin Avriano A.

Petrosea posted 2010 2,557% risen net profit

JAKARTA: PT Petrosea Tbk booked an increasing net profit in 2010 as much as 25 times or 2,557% from US$1.59 million in 2009 to US$42.25 mio, even the revenue only grow 8.8% from US$171.82 mio to US$186.94 mio at the same period.

Based on their financial statement that published in the bourse authority yesterday, the rocketing net profit happen due to declining on its provisions on doubtful accounts that shrunk 99% from US$26.99 mio on 2009 to only US$268,000 in 2010.

The management also consider that no allowance for doubtful accounts was provided on receivables from related parties as management believes that all such receivables are still collectible. The declining of such account also scrape its other charges account.

The other account that support the company which commandeered by Wadyono Suliantoro net profit is an increasing share of its associates' net income 3,253% from US$429,000 to US$14.38 mio.

The account is supported by its PT Santan Batubara profit, a joint venture coal company with PT Harum Energy Tbk, that increase from nothing in 2009 to US$8.8 mio in 2010. The other subsidiary that also support its net profit is a water treatment company PT Tirta Kencana Cahaya Mandiri that contribute US$1.78 mio from previously only US$1.1 mio.

Nonetheless, the increasing net profit can not uplift its PTRO shares price in the stock market due to declining Indonesia Composite Index 0.75% to 3,486 level yesterday.

The company is owned by Teladan Resources Group through PT Indika Energy Tbk, led by young businessman Wishnu Wardhana.