JAKARTA (Yosefardi) – Cement producer PT Indocement Tunggal Prakarsa Tbk (INTP) cuts its capital expenditure (capex) by 22.2% to Rp3.5 trillion for this year, from initial planned capex of Rp4.5 trillion.
The decline in sales volume prompts the cut in capex. The production capacity grows but the demand side has not increased yet.
In first half of 2015, INTP’s cement sales volume fell 7.7% to 8.32 million tons, from 9.01 million tons in the same period of 2014. Domestic sales declined 8.1%. INTP has spent capex of Rp1.6 trillion in the first half.
INTP booked net profit of Rp2.31 trillion in the first half of 2015 on revenues of Rp8.87 trillion. Net profit and revenue fell 8.3% and 6.6%, compared to the corresponding period of last year.