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Wika Beton ups capex to Rp 779 billion

21 August 2019 12:43

JAKARTA - PT Wijaya Karya Beton Tbk (WTON) or Wika Beton has raised its 2019 capital expenditure (capex) budget from Rp 428 billion to Rp 779 billion. The capex will be focused on increasing the company’s ready-mix production capacity.

To finance the capex hike, Wika Beton will release a treasury stock amounting to 377.15 million shares in October this year. “We have 4.33% [of treasury stock] amounting to 377 million shares… It will partly be used for this year’s capex as well as next year’s,” Wika Beton CFO Imam Sudiyono told the press after the company’s public expose at the IDX Building, Wednesday (21/8).

As of the first semester of 2019, Wika Beton has absorbed Rp 200 billion of its capex. By the end of the year, Mr Sudiyono predicts that the company’s capex absorption will reach around Rp 400-500 billion.

Until July, the company recorded a total contract value of Rp 9.33 trillion, which consists of Rp 3.92 trillion in new contracts and Rp 5.41 trillion in carry over contracts. Thus, the company is confident it can achieve this year’s target of Rp 14.5 trillion in new contracts.

Infrastructure projects still dominated Wika Beton’s contracts until July this year with a contribution of 68.97%, followed by energy projects with 18.85% and the rest from sectors including property, industry, and mining. (MS)

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