JAKARTA. PT Perusahaan Listrik Negara (Persero) or PLN has not extended its contract with PT Cikarang Listrindo Tbk (POWR), which will expire at the end of 2019.
Christanto Pranata, Finance Director & Corporate Secretary of POWR, said that his party was in negotiations with PLN. The company's 150 megawatt (MW) electricity sales contract with PLN will expire in December 2019. "Regarding this contract, we will continue to have discussions until the end of the year," Pranata said when met by idnfinancials.com on Tuesday (12/11) today.
Nevertheless, Pranata admitted that POWR still has 1 more contract with PLN in the long run. The contract covers electricity sales of 150 MW and will expire in 2031.
Meanwhile, Rani Maheswari Miraza, Investor Relations and Corporate Finance of POWR, said that the extension of the contract with PLN could not be confirmed in the near future. Since the change of management at PLN, said Miraza, the contract period with the company has become shorter. PLN usually signs the extension 12 hours before the expiration date.
For information, electricity sales to PLN account for 26% of POWR's total sales. Meanwhile, the other 74% is sold to industrial estates. The total sales revenue of POWR during 9M 2019 reached US$ 440 million, up 3.2% from the same period last year. (KR/AR)