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Friday, 20 November 09
INDONESIA UNITED TRACTORS PLANS $430 MLN CAPEX IN 2010


Reuters reported that, Indonesian heavy equipment distributor and mining contractor PT United Tractors Tbk plans capital expenditure of $430 million in 2010, finance director Gidion Hasan said on Friday.

The firm plans to use most of its capital expenditure for its subsidiary, coal contractor PT Pamapersada Nusantara, which has around 42 percent market share with clients such as Adaro Energy, Tambang Batubara Bukit Asam  and Kaltim Prima Coal, a unit of Bumi Resources.

"We plan to allocate $30 million for our heavy equipment distribution and the rest will be used for our mining contractor Pamapersada," Hasan told a media briefing.

"Funding for capital expenditure will come from our cash flow, leasing and syndicated loans. We have no plans for corporate (bond) issuance."

Hasan also said the firm expects revenue to rise between 10-15 percent in 2010. Revenue for the first nine months of 2009 was 21.3 trillion rupiah ($2.25 billion).

Analysts polled by Thomson Reuters I/B/E/S expected the firm to report revenue of 28.68 trillion rupiah and a net profit of 3.68 trillion rupiah this year.

Half of the firm's revenue comes from its mining contractor unit, while its heavy equipment business accounts for 40 percent and its own coal sales account for the remaining 10 percent.

United Tractors, a unit of the largest automotive distributor PT Astra International expects to mine 65 million tonnes of coal this year.

Its own coal production is around 3 million tonnes, but the firm plans to increase production by acquiring a couple of coal mines.

"We are in the process of due diligence for two coal mines in Central Kalimantan and we expect to complete the process in December. We may acquire both if the result (of due diligence) is good. The resources are estimated to be around 20-50 million," said Hasan.
Source: Reuters



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