NEWS

PP PRESISI (PPRE) Strategy Aiming IDR 7 Trillion New Contracts

PT PP Presisi Tbk (PPRE) is optimistic that it can achieve business growth throughout this year. The company targets to reap new contracts of IDR 6 trillion to IDR 7 trillion in 2023. As an illustration, last year PPRE posted a new contract value of IDR 5.2 trillion. Acquisition of contracts in 2022 is dominated by two main business lines, namely civil work 41% and mining services 55%.

“The remaining 4% comes from other supporting business lines,” said PT PP Presisi’s Director of Finance, Manrisk and Legal, Arif Iswahyudi, when contacted by Kontan.co.id, last Thursday (23/2). Arif stated that his party was confident of realizing the targets set this year. This optimism is driven by several main factors, including Indonesia’s economic recovery, the continued development of national strategic projects, and increasing added value for Indonesia through downstream mineral mining.

According to him, each of the supporting factors above provides opportunities for PPRE, which is a heavy equipment-based construction service company with ownership of more than 3,077 units of various well-known brands. In addition, PPRE’s performance this year was also supported by the Company’s portfolio in working on national strategic projects, management of heavy equipment owned, and competent human resources in their fields.

“We are focusing on our main business sector in mining and civil services
By targeting new contracts that we have obtained on an ongoing basis in mining service projects, IKN and other strategic projects,” said Arif. With a number of targets and strategies implemented, his party is targeting a revenue figure of IDR 5 trillion-IDR 5.7 trillion in 2023. Thus, PPRE is expected to reap a net profit of around IDR 200 billion-IDR 223 billion by year’s end.
PPRE has not officially released its 2022 financial report. However, as of the third quarter of last year, the company’s revenue was observed to grow 40.1% yoy to Rp 2.6 trillion. Where, in the same period the previous year, PPRE’s revenue only reached IDR 1.8 trillion.

The increase, the majority came from infrastructure projects and mining services, amounting to 63.5% and 27.3% respectively. As for the supporting business lines, namely structure work, production plant and equipment rental, the total revenue contribution was 9.2%. From a bottom line perspective, PPRE recorded a net profit of IDR 144.5 billion, or grew 34.5% compared to net profit in the third quarter of 2021 which was IDR 107.4 billion.

Source: https://industri.kontan.co.id/news/incar-kontrak-baru-hingga-rp-7-triliun-ini-strategi-pp-presisi-ppre

Image Source: industri.kontan.co.id