JAKARTA - PT Baramulti Suksessarana Tbk (BSSR) revised down its yearly capital expenditure (capex) to US$6.6 million in 2016 from a previous US$7 million.
According to Eric Rahardja, Director of Finance of Baramulti Suksessarana, "We have to be careful on this capex, we have the budget but we need to see again the priority."
He explains that the company would like to budget 43% of its targeted capital expenditure or US$2.85 million towards building a loading facility including a silo to optimize loading time as part of its coal logistics.
Around 16% of the capex or US$1.1 million would be devoted towards new machinery and vehicles to support the crushing plant that was built last year. He admitted that this budget would also include the replacement of aging machines.
The company's targeted capex is prone to changes throughout the year. Eric admitted that falling coal prices would affect the priority of which initiatives would and would not be tackled this year.
In response the the company's margins moving through the year he added, "The prediction is the margin is not going to be as good as this year (2015). Because our margin will really get pressure from the price."
The company's 2015 profit margin scored 11.82% much better than 2014's 1.17% margin. (CH)