ACSET Acquired IDR1.44TN New Contract Bookings in the First Half of 2019

ACSET Acquired IDR1.44TN New Contract Bookings in the First Half of 2019 | Jakarta, 30 July 2019 – In the first half of 2019, PT Acset Indonusa Tbk (ACSET) has recorded new strategic contract bookings, including Civil Works for Java 1 Combined-Cycle Power Plant and Soma Karimun Coal-Fired Power Plant (2 x 25 MW) in Riau. Both projects, with a combined value of IDR1.33trillion, constituted a majority of ACSET’s overall new contract bookings of IDR1.44trillion for the year. ACSET will strive to book new contracts more selectively by opting projects that are suitable with the Company’s capability and competencies. Until the end of the first half of 2019, ACSET booked IDR1.55trillion revenue, which is 7% lower compared to the same period last year, which was largely due to decline in revenue from the infrastructure sector as ongoing projects are nearing their completion.

From the total revenue recorded in this first half, infrastructure contributed 71%, construction 13%, foundation 8% and others 8%. Others represent trade activities done by ACSET’s subsidiaries. In this period, ACSET recorded IDR404bio net loss, primarily due to the delay in several Contractor Pre Financing (CPF) and building projects, which resulted in an increase in funding cost, overhead and other project acceleration costs. Besides, ACSET also experienced adjustment in final account value that resulted in ongoing projects’ revenue and profit decline.

Several strategies that are being executed to improve ACSET’s performance and to support the Company’s growth involve the implementation of better working capital scheme management especially for CPF projects, more effective and efficient enforcement of project control, and the improvement of the Company’s operational excellence. ACSET will continue to focus on infrastructure projects to support the business growth, and continue to manage its foundation and building business lines selectively. ACSET is committed to utilize its core competencies in those respective fields to develop and diversify competitively into marine and soil improvement works. ACSET has also possessed the capability to do offshore soil improvement works through its cement deep-mixing (CDM) barge—ACSET Sea I.