PP Presisi Targets New Contracts To Grow 20 Percent This Year

Photo: Doc. PP Precision

JAKARTA - The state-owned construction company, PT PP Presisi Tbk (PPRE) is targeting new contract acquisitions to increase by 15 to 20 percent year on year (yoy) by 2024, compared to achievements by 2023.

During 2023, the company recorded a new contract worth IDR 6.7 trillion, an increase of 28.72 percent (yoy) compared to 2022 which was valued at IDR 5.2 trillion.

"We are targeting the acquisition of new contracts in 2024 to increase by 15 to 20 percent (yoy), dominated by the mining services sector by looking at the market potential 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 as to boost revenue to increase added value for all stakeholders," said PPRE President Director I Gede Upeksa Negara in Jakarta, quoted from Antara, Wednesday, March 13.

During 2023, the company posted sales of IDR 3.4 trillion, earning a profit of IDR 172 billion.

I Gede explained that the mining and civil construction business segment became the main contributor to revenue by 92 percent, and the remaining 8 percent came from the supporting business line, namely production plants, structure work, and rental heavy equipment.

The company's achievements mostly came from the completion and progress of mining service projects by 47 percent, or an increase of 13 percent (yoy) when compared to the previous year of 34 percent.

Then, civil construction by 45 percent, the rest comes from a structure work project of 3 percent, a rental heavy equipment of 3 percent, and a production plant of 2 percent.

"The majority income is derived from mining and civil construction business lines, in line with the company's strategy to stay focused on mining services and civil construction," said I Gede.

In terms of financial ratio, the leverage ratio improved, such as the Debt to Equity Ratio (DER) from 1.41 times on December 31, 2022 to 1.19 times on December 31, 2023, and the DER Interest Bearing from 0.75 times on December 31, 2022 to 0.54 times on December 31, 2023.

I Gede explained that the company was still able to maintain a positive EBITDA figure amid the withdrawal of several projects targeted to be obtained in the early quarter to the final quarter of 2023.

"Therefore, PPRE has not been able to reach the maximum revenue in 2023, but the PPRE has succeeded in reducing the main burden by implementing the cost leadership program and implementing optimization of tools to maximize production so that gross profit margins increase at 17.45 percent in 2023," said I Gede.