PP Presisi Earns IDR 172 Billion Profit In 2023

Photo: Doc. PP Precision

JAKARTA - PT PP Presisi Tbk (PPRE) is an integrated Civil Construction and Mining Services Company based on heavy equipment in Indonesia, managed to record a profit of IDR 172 billion in 2023.

This figure is supported by the Company's sales of IDR 3.4 trillion, of which the business segment in mining services and civil construction is still the main contributor to the Company's revenue of 92 percent, and the remaining 8 percent comes from the supporting business line, namely production plants, structure work and rental heavy equipment.

This achievement came mostly from the completion and progress of projects in mining services by 47 percent or an increase of 13 percent when compared to the previous year's 34 percent, civil construction by 45 percent, the rest came from the structure work project by 3 percent, rental heavy equipment by 3 percent, and production plant by 2 percent.

The majority revenue acquisition comes from the mining and civil construction service business line in line with the Company's strategy to stay focused on mining services and civil construction.

In terms of financial ratios, especially for the leverage ratio, have improved, such as the debt to equity ratio from 1.41x (31 Des 2022) to 1.19x (31 Des 2023), and the DER Interest Bearing from 0.75x (31 Des 2022) to 0.54x (31 Des 2023). From these data, it can be seen that the Company can still maintain the leverage ratio within the banking requirements.

The company can still maintain a positive EBITDA figure in the midst of the challenges it must face. This challenge is due to the resignation of several projects targeted to be obtained in the initial quarter to become the quarter of the end of 2023, so that PPRE has not been able to reach the maximum revenue in 2023, but the PPRE has succeeded in reducing the cost leadership program carried out and implementing optimization of tools to maximize production so that gross profit margins increase at 17.45 percent in 2023," said I Gede Upeksa Negara, President Director of PP Presisi, in Jakarta, Wednesday 6 March.

In terms of obtaining a new PPRE contract, it managed to record a new contract until December 2023 of Rp6.7 trillion, an increase of 28.72 percent year on Year (YoY) compared to December 2022 of Rp5.2 trillion. The acquisition of the new contract also recorded an increase in the acquisition of new contracts in the mining services sector by 11 percent compared to 2022.

The company is also targeting new contract growth in mining business lines in the following years in line with the huge potential in the Weda mining area, Central Halmahera.

"We are targeting the acquisition of new contracts in 2024 to increase between 15-20 percent by being dominated by the mining service sector by looking at the potential market in the mining sector which is still very large in the future, making our enthusiasm and motivation to continue to increase the value of new contracts so that it can boost revenues to increase added value for all stakeholders. Supported by equipment capacity as the company's strength, we believe PPRE can create Extensive operations in the mining world through Quality and High Standard Safety," concluded I Gede Upeksa Negara.