PT Gozco Plantations Tbk sets aside IDR340 billion capital expenditure this year to finance the expansion plan. The company is targeting to grow the revenues and net income by 30% each.
Gozco President Dirctor Tjandra M. Gozali explained that the fund will be used to add planted areas.
“The fund will be raised from both internal and external cash. With such amount of fund, we will expand the planted areas,” he said today.
In the meantime, the company has booked unaudited net income of IDR160 billion and revenues of IDR450 billion in 2010. There was a decrease in net income from IDR200 billion in the previous year.
Lower net income was caused by smaller gains in foreign exchange compared to that of the previous year.
In 2010, the company posted lower sales volume of crude palm oil (CPO) compared to that in 2009. Sales volume in 2009 was 59,500 tons while in 2010 it slipped to 56,500 tons.
By the end of 2010, Gozco planted not more than 18,000 hectare of the total 31,000 hectare the company owned.
“We think there is an opportunity to add more area through acquisition. But we have not came into that decision,” Tjandra continued.