BUILD REFINERY PLANT, MAHKOTA GROUP (MGRO) PREPARES CAPITAL EXPENDITURE OF IDR 200 BILLION
29 March 2019
KONTAN.CO.ID - JAKARTA. PT Mahkota Group Tbk ( MGRO ) has prepared a capital expenditure (capex) allocation of IDR 200 billion for this year.
According to Mahkota Group Corporate Secretary Elvi, the capex will be used for the construction of a refinery plant and the addition of stockpile tanks at subsidiaries. He said, the source of capex funds came from bank loans.
In 2018, MGRO's crude palm oil (CPO) production amounted to 219,149 tons. This figure exceeded the company's target of 193,715 tons.
This year, MGRO sets a CPO production target of 203,308 tons. The sales target reaches IDR 5.66 trillion. While this year's net profit target is IDR 123.16 billion.
To achieve this target, MGRO will focus on downstream by utilizing the new refinery plant. “This year MGRO will start to enter downstream with the operation of a new refinery plant which will produce various derivative products which will certainly increase revenue,” Elvi explained to Kontan.co.id, Wednesday (27/3).
Elvi said, MGRO's CPO selling price last year averaged around IDR 7,137 per kilogram. “The issuer hopes that in 2019 CPO prices can be slowly hoisted up along with government intervention in this business,” Elvi said.
For information, MGRO posted a net profit of IDR 84.52 billion in 2018, up 582.2% from IDR 12.39 billion in 2017. MGRO posted revenue of IDR 2 trillion in 2018, up 13.63% from IDR 1.76 trillion in 2017.
Based on MGRO's 2018 financial statements released on the Indonesia Stock Exchange (IDX) website last Monday (25/3), the company's largest revenue came from CPO sales of IDR 1.51 trillion. The second and third sources of income came from palm kernel sales of IDR 355.58 billion and tank rental services of IDR 68.26 billion.