JAKARTA. PT United Tractors Tbk (UNTR) reported having absorbed 30% to 35% of its capital expenditure (capex) budget arranged for this year.
Frans Kesuma, President Director of UNTR, claimed that most of the capex realisation in the first half of 2022 is allocated to cover the heavy equipment needs in the mining service business. Other than that, the capex in H1 2022 also went to the Martabe gold mining industry.
“This realisation still aligns with the United Tractors’ own projection,” Kesuma confirmed last Wednesday (10/8).
Although the capex realisation was still below 50% at the end of the first half of 2022, Kesuma is still confident that UNTR’s capex budget will be utilised as planned by the end of the year. He believes that the heavy equipment transportation will increase in H2 2022. Furthermore, the company will tend to the power plant construction project that has begun earlier this year.
For the record, UNTR has set the capital expenditure budget to USD 750 million to USD 800 million this year.
Specifically, approximately USD 570 million of it will be channelled to the mining and mining service businesses. Then, another USD 170 million will go to the gold mining business, factory infrastructures, and management system development. Then, what remains left will be spared for other business lines. (KR/ZH)