A subsidiary of state-owned construction company PT Wijaya Karya, PT Wijaya Karya Bangunan Gedung (WEGE), reported a significant increase in new contract revenue by July 2024, reaching a total of Rp1.21 trillion (US$77.9 million).
This marks a 31 percent rise compared to the same period last year, with the majority of contributions coming from the government sector, which accounted for 76.44 percent of the total new contracts.
Among the key projects contributing to WEGE’s revenue growth are the construction of the InaTEWS BMKG building with a contract value of Rp168.5 billion, the development of the Substation Building and Electrical Network of PT Bio Farma worth Rp55.4 billion, and the construction of the Oncology Center Building of the Ministry of Health valued at Rp248.4 billion.
These projects have been the main drivers of WEGE’s positive performance this year.
WEGE’s President Director, Hadian Pramudita, revealed that the annual growth of 31 percent is evidence of the success of the company’s strategy to focus on high-quality projects in the government, state-owned enterprises (SOEs), and private sectors.
“This growth is proof that our strategy to focus on high-quality projects, whether in the government, SOEs, or private sectors, is working well,” Hadian told a Public Expose presentation on Friday, August 30, 2024.
In addition to the construction sector, WEGE also demonstrated positive performance in the modular segment, securing 11 modular projects totaling Rp490.8 billion.
As of now, WEGE’s total order book has reached Rp8.67 trillion, including a carry-over of previous projects valued at Rp7.46 trillion.
These projects cover various types of development, ranging from public facilities and residential buildings to commercial and office buildings.
Financial performance
WEGE also reported positive consolidated financial performance for the period ending June 30, 2024 (unaudited), with a net profit of Rp18.61 billion, up 318.67 percent from the first quarter of 2024.
WEGE’s revenue was recorded at Rp1.38 trillion, with the construction segment contributing Rp1.26 trillion, the industrial segment Rp90.33 billion, and concession revenue Rp32.52 billion.
The gross profit achieved was Rp104.65 billion, with a gross profit margin of 7.58 percent, indicating an improvement compared to the same period last year at 6.97 percent.
In the financial report as of June 30, 2024, WEGE recorded total assets of Rp5.06 trillion and total equity of Rp2.57 trillion.
The company’s total liabilities decreased by 17.31 percent from the total liabilities in 2023, with a 35.08 percent reduction in short-term liabilities from trade payables.
This has positively impacted WEGE’s financial ratios, with the Debt to Equity Ratio (DER) decreasing to 0.96x, the Gearing Ratio to 0.09x, and the Current Ratio reaching 216.05 percent, indicating healthy liquidity fundamentals.
Hadian said that WEGE’s positive performance is a form of commitment to stakeholders and shareholders.
“Through the strategic steps taken by the company, such as being selective in choosing clients who meet bankable criteria, implementing monthly progress payment schemes, and requiring down payments, we ensure healthy cash flow and working capital,” he cited.
Moving forward, WEGE will continue to strengthen the development and optimization of its modular business as part of the company’s strategy to support sustainable performance.
With a focus on high-quality projects and the right strategies, WEGE is optimistic about continuing to grow and innovate in Indonesia’s construction sector.
