Adhi Karya picks 2 underwriters

State-owned construction company, PT Adhi Karya Tbk, picks PT Danareksa Sekuritas and PT OSK Nusadana Securities Indonesia to handle IDR1.5 trilion multiple bonds issuance. The company plans to refinance its maturing conventional bonds and Islamic bonds worth a total IDR500 billion. 

The maturing bonds are Adhi's conventional bonds worth IDR375 billion and Islamic bonds (sukuk mudharabah) IDR125 billion. Both were issued in 2007 and will mature on July 6 and 7. 

The bonds issuance referring to regulation by the Capital Market and Financial Institution Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) that allows the companies to file single registration document with a regulator for mutiple bond issuances within a selected number of years.

Adhi Karya 2011 net profit  dropped 3.89% following the increase in the company’s costs, higher than the surge in revenue. Net profit of the state-controlled contractor was IDR 182,12 billion last year, dropped from previous year of IDR189,48 billion.
Meanwhile, the company’s revenue was up 17.99% to be IDR6.69 trillion from IDR5.67 trillion. The cost of revenue was also up 20.06% to be IDR5.96 trillion from IDR4.96 trillion. It spurred the gross profit of the company to grow 3.35% to be IDR735.41 billion from IDR710.63 billion.
 The increase also happened in operating cost, consisting of general and administration cost, as much as 11.35% to be IDR243.04 billion from IDR218.28 billion. Thus the company’s operating profits fell 3.41% to be IDR413.54 billion from IDR428.13 billion.