JAKARTA - Cement producer PT Semen Baturaja Tbk (SMBR) plans to increase the price of its selling price by 4% this year, following higher distribution cost after subsidized fuel price hike. The state-controlled company had increased the selling price by 3% through the third quarter this year and would raise it further in the fourth quarter, considering the current condition.
The average selling price now is Rp957,000 per ton. In the meantime, Semen Baturaja expects 4% annual increase in sales volume to 1.3 million tonnes in full year 2014 and will increase it to 1.7 million tonnes next year, in line with higher demand in Sumatra where the company operates.
The company will also increase its production capacity from the current 2 million tonnes to 3.85 million tonnes by 2016 with investment up to Rp2.9 trillion (US$252 million). To complete the funding, it will use internal cash Rp2.3 trillion and may seek external funding Rp600 billion including bank loans and bonds. It expects revenue Rp1.26 trillion in 2014, rising 8% from that of 2013. Net profit is expected to reach Rp330 billion, or 6% higher from that of last year.
In the nine months ending September 2014, the company booked sales Rp853 billion, relatively not much change from that of the year earlier period. Its net profit grew 9% to Rp220.6 billion from Rp202.4 billion. The company is the leader with 55% market share in South Sumatra, operating three facilities in three cities: Baturaja, Palembang (South Sumatra) and Panjang (Lampung).
Source: PT Semen Baturaja Tbk Finance Director Ageng Purboyo Angrenggono.