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ABMM plans several new power plants
PT ABM Investama, the energy sector flagship of the Tiara Marga Trakindo Group, plans to build several more power plants within the next five years
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PT ABM Investama, the energy sector flagship of the Tiara Marga Trakindo Group, plans to build several more power plants within the next five years.
The plan is part of a program to further strengthen its electricity business.
The company, which is traded on the Indonesia Stock Exchange (IDX) under the code ABMM, plans to build several power plants with a combined capacity of up to 400 megawatts (MW) under its next-five-year-expansion program, according to corporate strategy director Yovie Priadi.
'The 400 MW plan consists of a number of power plants fueled by coal, water, biomass and gas. Investment per MW ranges between US$1.3 million to $2 million,' Yovie said Thursday.
Given the numbers, Yovie estimated, the company would need around $650 million in the next five years to fund the expansion. 'There are a number of funding options, including bank loans, the capital market and strategic partnerships,' Yovie said in a text message.
He added that as part of the expansion, the company had set its sights on as many as 10 potential big coal-fired and renewable power projects.
ABMM, which is controlled by the Hamami family, whose main figure Achmad 'Met' Hamami, has been named one of the richest figures in Indonesia, runs its power business through PT Sumberdaya
Sewatama.
The subsidiary currently holds a 20 percent stake in PT Metaepsi Pejebe Power Generation (Meppogen), which has a 110 MW combined cycle gas power plant in South Sumatra. The company's portfolio includes coal fired power plants and renewable power solutions. The electricity is mostly sold to state-owned electricity company PT PLN.
ABMM has seen growing contribution from Sumberdaya Sewatama, which is mainly engaged in power-generator rental services. Sumberdaya's electricity rental service grew by 8 percent last year to 4,642 kilowatt/hour compared to a year earlier, the best performer among other business lines.
The electricity rental service contributed about $132.93 million to ABMM's consolidated sales.
ABMM's total revenue stood at $777 million in 2013, declining by 12 percent compared to $886.97 million in 2012.
The company is suffering from the decline in the price of coal, which is its main business line. Its net profit stood at $4.6 million in 2013, a massive plunge of around 66 percent versus $13.6 million booked in 2012.
A number of companies have entered the electricity business as a independent power producer to meet the sharp increase in demand, as the country is in need of additional 59.5 gigawatts (GW) during 2013 to 2022 should it avoid an electricity crisis.
Given the figures, Indonesia needs to see around 6 GW additional capacity per year nationwide.
