Encourage Performance In 2024, CGAS Strengthens Business Diversification

President Director of CGAS Andika Purwonugroho. (Photo: Aris Nurjani/VOI)

JAKARTA - PT Citra Nusantara Gemilang Tbk (CGAS) targets revenue to increase by 20 to 30 percent by 2024 driven by business development and diversification.

"We are targeting revenue to increase by 20 to 30 percent (yoy), while profit can grow 4 to 5 percent in 2024," said CGAS President Director Andika Purwonugroho at a press conference, Monday, January 8, 2024.

Andika revealed that through a product diversification strategy, CGAS believes it can be an option for customers who are looking for alternative gas as an energy source for industrial purposes, so that they can continue to grow continuously and make more useful contributions to the wider community.

According to Andika, his party projects that it can reap sales figures of up to IDR 1 trillion over the next 5 years or an increase of almost 4 times compared to 2023.

"Meanwhile, net profit in the same period increased up to 10 times compared to 2022," said Andika.

For information, CGAS officially listed its initial shares or IPO by releasing 531.42 million shares to the public with a nominal value of IDR 50 per share or equivalent to 30 percent of the company's issued and fully paid capital and managed to raise funds worth IDR 179.62 billion.

The public offering price is priced at IDR 338 per share or is at the upper limit of the initial bid price (book building) of around IDR 284-IDR 338 per share.

Andika said the decision to conduct an IPO was a step for the company to increase its funding capacity in order to accelerate growth and strengthen financial stability.

According to Andika, CGAS currently plans to build one LNG Station and two CNG Stations throughout 2024.

This development will be parallel after the regulatory process for the construction of the LNG station in the first quarter of 2024.

The LNG Station will start construction in the first quarter of 2024 and trials in the same year. There are two additional CNGs also in Purwodadi and Gresik," he said.

Andika explained, 90 percent of the proceeds from the IPO after deducting the cost of emissions will be used for capital expenditure (capex) to build an LNG station in the Galian Field Tambun Zone 7 Regional 2, while the rest will be used for working capital.

Andika said that the company plans to expand its business to several regions, by building a new mother station that is closer to the target market, namely in Grobogan Purwodadi, Central Java with a plant capacity of 1.5 MMSCFD and mother station in Majalengka with a plant capacity of 1 MMSCFD, as well as a mother station in Manyar, Gresik, East Java with a plant capacity of 2MMSCFD.

"Hopefully, with the distribution of business locations, the company can reach and serve more consumers from various segments," he said.

Andika conveyed that the development and diversification of businesses to increase retail customers currently only contribute 20 percent to the total number of customers and targets to grow by 40 percent of the total number of customers in the next five years.

"Retail portion is still 20 percent of all customers in the next 5 years can grow 30 percent to 40 percent," he said.