Aug 02, 2019 19:00 JST

Source: PT Wijaya Karya (Persero) Tbk.

WIKA's Net Profit in 1H-2019 Grows 60.48%

JAKARTA, Aug 02, 2019 - (ACN Newswire) - PT WIJAYA KARYA (Persero) Tbk. (WIKA) booked a net profit of Rp1.015 trillion in the first half of 2019, a 60.48% increase year-on-year (YoY) from Rp632.52 billion recorded in the same period in 2018.

WIKA's President Director, Tumiyana remarked that the achievement was the product of, among others, the Company's effort to improve quality and efficiency. As a result, the Company generated a net profit margin of 8.93% from sales of Rp11.36 trillion.

"We aim to become a leading company in engineering, procurement, and construction (EPC) and investments with a focus on quality. To that end, every project must be approached using effective planning processes," said Tumiyana.

Tumiyana added that the Company has been optimally using the Building Information Modelling (BIM) in preparing designs, models, visualisations, and simulations. With this approach, the Company is able to minimise risks such as cost overruns and inefficiencies in construction.

WIKA's profitability improvement is also attributed to its backward-forward integration strategy in seven of its business lines to improve supply chain efficiency, reduce production costs, and enhance sustainable business development (investments).

WIKA's President Director expresses his confidence that the Company will continue to improve its productive capacity through new, large-scale projects. Tumiyana's confidence stems from the fact that the Company's capital can be further strengthened, given that its current net gearing ratio is 0.74 while its gross gearing ratio is 1.05.

The Company's positive performance in the first half of 2019 was also reflected in new contracts worth Rp15.23 trillion. Of the figure, the largest contributor of new contracts was the infrastructure and building segment with 39.27%, followed by the energy and industrial plant segment with 39%, and industry segment with 17.60%. Lastly, the property segment contributed 4.12% to the value of new contracts.

WIKA's new contracts in 2019 include construction of the Serpong-Balaraja Toll Road in Banten, relocation of Pertamina's pipeline in West Java, development of the Terminal 3 Domestic Hotel at the Soekarno-Hatta Airport, and a number of overseas projects in Malaysia, Algeria, and Taiwan.

Contact:
Mahendra Vijaya
Corporate Secretary
Email: mahendra.v@wikamail.id

Source: PT Wijaya Karya (Persero) Tbk.
Sectors: Daily News

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