PT PP Presisi Tbk (PPRE) is targeting a IDR 7 trillion nickel project in Morowali and Halmahera next year. This highlights PPRE's commitment to becoming a key player in the mining services sector as its core business.
The President Director of PT PP Presisi Tbk, Arzan, stated that this move is supported by the growing global trend and the bright prospects of the mining sector in Indonesia. To ensure business sustainability, PPRE is also preparing several strategic steps moving forward.
"Expansion and massive growth in the mining sector, exploring new partnerships with nickel mine owners, and seeking new contract opportunities in other mineral sectors such as bauxite, tin, and coal. Optimizing Equipment Rental by increasing the utilization of idle assets through external project rental contracts," he said.
PPRE reported that the contribution of its Mining Services business has been a major driver of new contract acquisitions over the first three quarters of 2024, reaching 72%, with projections to increase to 83.7% by the end of the year.
Additionally, the company noted the dominance of the private sector market segment, which accounted for 91% of total new contracts through Q3 2024.
One of the key focuses is the increase in Mining Equipment capacity, which absorbs 80% of the capital expenditure (CAPEX) allocation in 2024. This step is in line with the Company's strategy to continue developing its Mining Services business line as a key priority going forward.
In addition, business diversification continues with a Selective Civil Work approach, where PPRE will synergize with PT Pembangunan Perumahan (Persero) Tbk, the Company's parent, to capture opportunities in the high-value civil engineering sector.
Meanwhile, new contract acquisitions increased by 27% (YoY) to Rp6.3 trillion in Q3 2024, with a full-year estimate reaching IDR 7.9 trillion, a 17% increase compared to 2023.
Revenue grew by 5.6% to IDR 2.7 trillion in Q3 2024 and is projected to reach IDR 4 trillion by the end of the year, a 19% increase compared to the previous year.
Net profit rose by 12% to IDR 100 billion in Q3 2024, with a full-year projection of IDR 194 billion, a growth of 9.6%. The company's equity is projected to increase by 12% to IDR 3.9 trillion, reflecting strong and sustainable financial fundamentals.
