VIVAnews - PT Total Bangun Persada Tbk (TOTL) is going after a new contract which is worth Rp 2 trillion along 2010. Meanwhile, the net profit is expected to grow 15 percent to Rp 57.5 billion compared to the 2009 estimation which was Rp 50 billion.
Total Bangun Persada Investor Relations Director Arif Suhartojo is optimistic that his company would be able to achieve the targeted contract. In 2010, construction industry is predicted to be quite prospective.
“Our pipeline has reached Rp 3.5 trillion. We are sure that the success rate could be up to 15 percent,” Suhartojo said during a press conference at Total’s office in Jakarta on Monday, November 9.
He also said the company had earned Rp 1.14 trillion worth of contract until the third quarter of 2009. By the end of 2009, Total is expecting to have obtained up to Rp 1.7 trillion worth of contracts.
“In our pipeline, there are about 20 projects in tenders,” Suhartojo said.
Aside from the Rp 2 trillion targeted contract, the company is projecting stagnant revenue, just like the estimated total amount of income in 2009, Rp 1.7 trillion.
The expectation was motivated by the enforcement of three percent income taxes to the contractors which is higher than the previous 1.5 percent.
However, Total is hoping to increase its net revenue to Rp 57.5 billion which is based on the efficiency of project management, margin increase and the selection of more beneficial projects.
Suhartojo also explained that office projects demand are still dominating the construction sector. There are also apartment and mall projects which are getting higher in numbers.
During the third quarter of 2009, apartments and office buildings were contributing up to 37 percent and 12 percent respectively. Other contributions were coming from other projects like malls (13 percent), utilities (12 percent), religious centers (12 percent) and hospitals (7 percent).
Meantime, educational and industrial projects were both giving six and one percent to the sector.
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Translated by: Nataya Ermanti
