CORPORATE STRATEGIC - JAKARTA. PT Eagle High Plantations Tbk (BWPT) is preparing a capital expenditure (capex) allocation of IDR 300 billion in 2024.
BWPT's President Director Henderi Djunaidi said, this year's capex funds will be focused on the construction of a mill extension in East Kalimantan, a Kernel Crushing Plant (KCP) in one of BWPT's factories in Central Kalimantan, and a Biogas Power Plant (PLTBg) also located in Central Kalimantan.
“BWPT's current capex priority as a 2024 business plan is expected to increase the downstreaming of the green project as a form of BWPT's commitment to ESG,” Henderi said to Kontan.co.id, Tuesday (13/2).
In addition, the capex funds amounting to IDR 300 billion are also used as capital for new planting on existing HGU, infrastructure improvements, and heavy equipment rejuvenation.
He mentioned, starting from this year 2024 until three or four years ahead, BWPT will budget capex up to a total of IDR 1 trillion.
Read Also: Eagle High Plantations (BWPT) Targets Double-Digit Net Profit Increase in 2024
BWPT also has plans to build new palm oil mills (PKS) for the next three years.
On August 8, 2023, BWPT has conducted a groundbreaking for a PKS with a capacity of 30 tons per hour in East Kalimantan Plantation.
The palm oil mill in East Kalimantan will be accelerated in its construction and is targeted to start operating in the first quarter of 2025, “Because the existing factory is currently operating at maximum capacity,” he added.
BWPT has not officially released the 2023 financial report. But if we look at the realization until the third quarter, BWPT's operating income was recorded to decrease by 6.42% year on year (YoY) to IDR 3.21 trillion.
Meanwhile, from the bottom line perspective, BWPT recorded a positive performance seen from the increase in the company's net profit which was at IDR 104.3 billion, compared to the same period last year which suffered a loss of IDR 15.44 billion.
