New contracts boost WIKA’s profits by 27.7%

JAKARTA. State construction company PT Wijaya Karya (WIKA) enjoyed higher net profits in the first six months of this year as profits grew 27.7 percent to Rp 180.07 billion (US$18.81 million) from 2011.

WIKA’s net revenues rose to Rp 4.02 trillion between January and June this year, 21.45 percent higher from the same period in 2011, thanks to new contracts secured by all of the company’s five divisions — construction, mechanical and electrics, industry, real estate and trading.

“During the first half of 2012, WIKA reaped Rp 8.2 trillion in new contracts, and grew 41.38 percent on the year before,” WIKA corporate secretary Natal Argawan Pardede said during a phone interview on Thursday.

Most of the new contracts, he added, came from state-owned enterprises (SOEs). SOEs made up 50 percent of the total figure so far, followed by the government and private sectors with 30 percent and 20 percent, respectively.

WIKA is targeting to book Rp 16.5 trillion in new contracts by the end of this year, a 37.5 percent increase on last year, according to Natal.

The total new contracts would see the company work on projects worth Rp 32.09 trillion in 2012, of which Rp 15.5 trillion projects were carried over from last year, Natal said.

“Last year our total contracts were valued at Rp 26.59 trillion. In 2012, we expect to secure more infrastructure projects as the industry is witnessing higher demands,” he added.

In August alone, Natal said, WIKA obtained Rp 283.51 billion in new contracts, ranging from road maintenance in Timor Leste to flyover construction in Brunei Darussalam.

During this year’s first half, WIKA saw its construction division dominated with 36.78 percent of total net revenues at Rp 1.48 trillion. However, the real estate division recorded the highest net sales increase, a jump of 91.28 percent to Rp 287.37 billion.

“Our real estate division has been receiving more and more projects involving high-rise buildings, such as condotels in Bandung, West Java; DKI Jakarta; Manado, North Sulawesi; and Surabaya, East Java,” Natal said.

The company also reported a surge in its costs of goods sold in the first six months of 2012, up 19.07 percent to Rp 3.66 trillion from the previous year due to growing expenses in most of its divisions.

WIKA currently has six subsidiaries — construction firm PT Wika Beton, real estate firm PT Wika Realty, trading firm PT Wika Intrade, electric firm PT Wika Insan Pertiwi, construction and engineering firm PT Wika Bangunan Gedung, and mining and geothermal firm PT Wika Jabar Power.

WIKA is aiming to book revenues of Rp 12.16 trillion from the sales of both its own and joint operation projects by the end of 2012.

The company expects its net profits to stand at Rp 430 billion this year, a rise of 21.3 percent from 2011. The company’s market capitalization reached Rp 6.13 trillion.

As of June 2012, WIKA’s total assets were recorded at Rp 9.89 trillion. Its liabilities and equities stood at Rp 7.41 trillion and Rp 2.48 trillion, respectively.

WIKA’s shares closed at Rp 1,040, down 1.89 percent from a day before.

The Jakarta Post