Surya Semesta revenues grow, profits drop in Q1

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Developer PT Surya Semesta Internusa (SSIA) reported a double-digit growth in revenues in the first quarter of the year, thanks to increases in its construction and hotel segments. However, higher costs during the period resulted in a decline in net profits.

The company’s latest financial report reveals that between January and March 2013, Surya Semesta’s revenues reached Rp 1.11 trillion (US$113.64 million), up 25.4 percent from a year before. Construction remained the biggest contributor to the figure with 59.6 percent, followed by property with 29.6 percent and hotels with 10.8 percent.

In a statement, Surya Semesta said income from its construction business rose by more than half to Rp 659.8 billion. The amount of contracts on hand by the end of the first quarter stood at Rp 3 trillion, compared to Rp 1.77 trillion during the same period last year.

The growth in construction was supported by the positive performance of PT Nusa Raya Cipta (NRC), its subsidiary in construction. In January alone, it booked Rp 700 billion in new contracts.

NRC is currently involved in the construction of an apartment area within the Ciputra World 2 superblock complex in Mega Kuningan, South Jakarta, and in the 116-kilometer-long Cikampek-Palimanan toll road project.

NRC is slated to go public in the first half of the year by selling 20 to 30 percent of its enlarged shares.

In the hospitality sector, Surya Semesta posted a 24.2 percent surge in income to Rp 119.9 billion. At the moment, the company operates five hotels in Bali, Jakarta and Singapore, including the Gran Melia and the Banyan Tree Ungasan Resort.

It put the boost in the hotel business down to the newly renovated Gran Melia in Jakarta, which underwent a renovation from June 2011 to October 2012. Surya Semesta also plans on opening its first budget hotel in Karawang, West Java in the third quarter.

Property became the company’s only segment, which posted a drop in income in the first quarter, falling 11.4 percent to Rp 327.2 billion. It sold a total of 28.8 hectares of land, down from 43.5 hectares last year. However, its average selling price increased to $103.5 per square meter (sqm) from $84.4 per sqm.

Surya Semesta runs several property businesses, such as the Suryacipta Industrial Estate in Karawang, the Graha Surya Internusa office building in Kuningan, South Jakarta, and the Glodok Plaza shopping center in Glodok, West Jakarta.

Along with higher revenues, the company also recorded increases in costs. In the first quarter, direct costs jumped 40.1 percent to Rp 747.73 billion, while financial expenses grew more than twice to Rp 32.7 billion.

It attributed the higher financial expenses figure to the interest rate of its bonds issuance last year, in which it reaped Rp 700 billion for business expansion. By the end of March 2013, Surya Semesta net profits stood at Rp 200.29 billion, down 10.1 percent.

This year, the company aims to generate Rp 4.3 trillion in revenues and Rp 850 billion in net profits. The revenue target is 20.6 percent higher than the 2012 achievement, while the net profits figure will be up 20.2 percent from last year.

Surya Semesta reported it had Rp 4.97 trillion in total assets as of March 2013. Its liabilities and equities amounted to Rp 3.09 trillion and Rp 1.88 trillion respectively.

— JP/Tassia Sipahutar

Surya Semesta revenues grow, profits drop in Q1