PT Darma Henwa Tbk (DEWA) will allocate a large amount of capital expenditure (capex) next year. This coal mining contractor issuer will allocate capex of up to USD 190 million or the equivalent of IDR 2.9 trillion.

DEWA Director & Corporate Secretary Ahmad Hilyadi said that capex would be used for fleet rejuvenation and building new fleets. The rejuvenation of the new fleet is expected to make production more efficient so that DEWA's production target can be achieved.

The amount of capex next year is also in line with DEWA's business transformation plan. This Bakrie Group affiliated issuer is indeed quite expansive in forming new subsidiaries. Throughout this year, DEWA has formed 8 new subsidiaries.

Hilyadi said that the formation of these subsidiary businesses was a form of DEWA's business transformation to focus more on one business area.

“Each business unit has one value. DEWA is currently reviewing better business transformation," said Hilyadi.

Meanwhile, this year, DEWA only budgeted a capex of IDR 217 billion, most of which was for the purchase of new equipment, spare parts and components to increase production.

DEWA's operational performance managed to grow as of the end of September 2023. DEWA's overburden (OB) removal volume reached 149.9 million bank cubic meters (bcm), up 27% year-on-year (yoy).

DEWA's coal production volume rose 2.39% yoy to 13.34 million tons. Meanwhile the volume of material moved rose 25.23% to 160.6 million tons from 127.9 million tons in the same period last year.

Image source: DEWA

Source: www.investasi.kontan.co.id/Darma Henwa (DEWA) Alokasikan Capex Jumbo di Tahun Depan