Prospective EBT Power Plant Issuer, Arkora Hydro (ARKO) Aims for a 30% Increase in Revenue

21-06-2022 | By : Arkora Hydro

JAKARTA, - A prospective issuer of new and renewable energy power plants (EBT), PT Arkora Hydro Tbk (ARKO) targets revenues to grow by 20-30% in 2022.

Arkora Hydro Director Ricky Hartono said that the revenue growth target will be generated from electricity production and an increase in the company's factories ( sites ) that are already operating.

In addition, this year's revenue growth will also be contributed by the construction of several micro hydro power plants (PLTM).

"Thus, ARKO's projected performance from 2020 to 2025 will increase by around 20% every year. In terms of revenue , in 2021 our revenue has increased compared to 2020. In 2021 our revenue will reach Rp. 198 billion compared to the previous year of Rp. 50. billion," said Ricky in Jakarta, Tuesday (21/6/2022).

In terms of gross profit , the company also consistently experienced an increase supported by a fairly good operating margin because the company does not have fuel or fuel costs . Another support is that the company has relatively low operations and has quite good financing supported by infrastructure-friendly financing.

"With that, we can get a pretty good gross margin ," said Ricky.

Until now, ARKO is working on the construction of the Yaentu PLTM in Poso, Central Sulawesi and the Kukusan PLTM in Lampung which is expected to start construction this year.

President Director of PT Arkora Hydro Tbk Aldo Artoko added that this year the company invested Rp 100 billion to Rp 120 billion for the Yaentu project. As for the Kukusan project, the company spent around Rp 45 to Rp 55 billion

"So, we now have two projects that are actively running. One is the Yaentu PLTM construction project which is currently under construction and the Kukusan PLTM which will start construction in Lampung. The two projects are the capex drivers that we will use," Aldo explained.

In the future, the company also plans to spend capital for other projects such as Arkora solar power of around Rp 20 billion.

"So, if it can be concluded that the 2022 capex is around Rp 200 to Rp 250 billion. Of course, this will be supported through funding sources from company cash and loans from the Indonesia Infrastructure Finance (IIF)," Aldo explained.

Furthermore, the company is also actively looking for hydro projects with large potentials above 25 MW. It is noted that Arkora Hydro has completed the construction of the Cikopo-2 mini hydro project with a total cost of US$ 1.65 million/MW and a capacity of 7.4 MW.

Including, working on the Tomasa project with an investment cost of US$ 1.75 million/MW. This investment is below the industry average of US$ 2.2 - 2.5 million/MW. Tomasa is a power plant project with a capacity of 10 (2x5) MW owned by Arkora Hydro through its subsidiary, PT Akora South Sulawesi. Last March 2022, the progress of the project has entered the commercial operations date (COD) stage.

In addition, ARKO is also working on the construction of the WKS-2 hydropower plant in Lampung, Sumatra with a capacity of 5.4 MW. The company targets the project to be operational in the fourth quarter of 2024. That way, in the next four years, the company aims to have around 125 MW of hydropower operating.


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