PT United Tractors Tbk. (UNTR) absorbed capital expenditures reaching IDR 3.9 trillion until July 2022 from the total target of IDR 11 trillion - IDR 11.5 trillion this year. The Astra Group issuer focuses on using the company's internal cash for capital expenditures.
UNTR Director Iwan Hadiantoro said that UT's current capex until July has spent IDR 3.9 trillion.
"Most of it or IDR 3.5 trillion we spend in the mining contracting segment for new equipment to support heavy equipment activities, while the rest is for infrastructure improvements in gold mines," said Iwan in a public expose, Monday (12/9/2022).
This year, UNTR prepared a capital expenditure budget of around Rp11 trillion - Rp11.5 trillion mostly for the purchase of heavy equipment. The details are IDR 9 trillion for mining contracting in Pama Persada (PAMA), IDR 1.5 trillion for the Agincourt gold mine, and the rest for other businesses.
"We spend the source of funds from internal cash. From UNTR's financial statements, we have a very sufficient cash position to support capital expenditure," said Iwan.
For banking syndication, UNTR said that currently the banking facilities owned by the group are sufficient.
"We already have standby facilities from several banks, for future UNTR acquisition projects," he explained.
UNTR Director Iman Nurwahyu added that the absorption of capex in the first semester was still far from the target. However, with the supply of heavy equipment about to increase in the second half, most of the purchases from the mining contracting business will be made in the second half.
"Slowly their output from Komatsu factories across the country is shifted for the Indonesian market, so our subsidiary will get a stronger allocation maybe in the fourth quarter of 2022, so capex will be absorbed dominantly there," he explained.