Hutama Karya secured new contracts worth Rp24 trillion
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Hutama Karya raih kontrak baru Rp24 triliun
15 November 2024
Jakarta, ID – In the third quarter of 2024, PT Hutama Karya (Persero) secured new contracts worth Rp24.05 trillion, marking a 15.59% increase compared to the same period last year on a year-on-year (YoY) basis, and nearly double the realisation in 2024.
Hutama Karya Corporate Secretary Executive Vice President (EVP) Adjib Al Hakim stated that the road and bridge sector contributed the most to the new contract realisation, accounting for 79.90%. This was followed by the water infrastructure sector at 11.31%, the building sector at 4.44%, and the transportation infrastructure sector and other sectors at 4.34%.
"To achieve this result, the company was more selective in securing new contracts by focusing on projects with good margins that align with the company’s competencies," Adjib said in his press statement, as cited in Jakarta on Thursday (14/11/2024).
In terms of infrastructure projects, performance in the public construction and building sectors has been quite excellent, especially in public-private partnership (PPP) projects. This year, the company will begin working on the Maberamo-Elelim section of the Jayapura-Wamena segment of Trans-Papua in Highland Papua, stages 3 and 4 of the proving ground in Bekasi, the Candidasa Beach conservation project in Bali, and Kandou Hospital in Manado, all of which are PPP projects.
Until the third quarter of 2024, state-owned enterprise (SOE) projects continued to dominate Hutama Karya's new contracts, contributing 69.78%. This was followed by government projects at 25.23% and private projects at 4.99%.
"We are optimistic about continuously pursuing new contracts for the rest of 2024 in line with our target. Until the third quarter, we successfully completed several major projects, such as the Tambak Lorok Combined Cycle Power Plant (PLTGU) in Semarang and the Bayung Lencir-Tempino toll road in Jambi," Adjib added.
The company is also aiming to complete several projects in the fourth quarter of 2024. These include EPC projects such as the Muara Tawar PLTGU in Bekasi, the Tuban Jetty in East Java, and the Tanjung Batu TBBM Dock in East Kalimantan. Additionally, there are several projects in IKN, including the Karangjoang-KKT Kariangau toll segment (section 3A), the second series of civil servant flats, the second series of Coordinating Ministry buildings, the VVIP airport, hospitals, and mosques in IKN, as well as the Meninting Dam in West Nusa Tenggara (NTB).
This year, Hutama Karya is targeting to build 82.7 kilometres (km) of the Trans-Sumatra Toll Road (JTTS), with 44.5 km already completed by the third quarter of 2024.
"In the fourth quarter of 2024, Hutama Karya is targeting to complete several segments of the JTTS in both the first and second stages. In the first stage, the segments set to be operational are the Binjai-Pangkalan Brandan segment (section 3) spanning 20 km, the Sigli-Banda Aceh segment (section 1) spanning 25 km, and the Padang-Sicincin segment spanning 37 km. Meanwhile, in the second stage, ramps 2 and 3 of the Palembang Junction are set to be operational," Adjib explained.
Lastly, in terms of the toll road management business, Hutama Karya recorded a significant increase in traffic on its managed segments. In the third quarter of 2024, traffic growth reached 15% compared to 2023.
"Traffic grew thanks to new operating segments. Hutama Karya forecasts traffic growth to reach 16% in the remainder of 2024, which will help increase its revenue from toll roads," he stated.
Financial performance
Meanwhile, in terms of its financial performance up to the third quarter of 2024, the company recorded a net profit of Rp84 trillion, which represents a 9.73% increase year-on-year (YoY). During this period, Hutama Karya's equity position stood at Rp136.07 trillion, marking a 58.39% increase YoY, or Rp50.17 trillion. This increase in equity was accompanied by a 3.78% YoY decrease in the company’s liabilities, which now total Rp52.88 trillion.
In terms of EBITDA, Hutama Karya achieved a realisation of Rp2.86 trillion, reaching 99.11% of the RKAP target for the third quarter of 2024. This EBITDA realisation was supported by efforts to make costs more efficient, with the cost of goods sold decreasing by 3.78% and operating expenses being controlled through effective risk mitigation. Additionally, the company has recorded a significant increase in equity.
Adjib Al Hakim stated that Hutama Karya's improved financial performance (unaudited) was in line with the construction progress of national strategic projects (PSNs), such as the Trans-Sumatra Toll Road (JTTS), Nusantara Capital City, and various public-private partnership (PPP) projects.
According to him, the company’s equity increased significantly due to two main factors: the state equity participation (PMN), which reached Rp28.88 trillion at the end of 2023 and Rp18.6 trillion in April 2024. Additionally, the net profit in the third quarter of 2024 saw a significant increase from last year. On the other hand, the company’s main liabilities decreased due to the repayment of outstanding debt for JTTS through asset recycling at the end of June 2023.
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