PT Barito Renewables Energy (BREN) is dedicating a capital expenditure (Capex) budget of US$165 million (Rp2.57 trillion) to support maintenance of operational assets and expansion of power generation capacity through the end of 2024.
By September 2024, BREN had utilized US$52.4 million of this capex budget, with US$33 million spent on maintaining existing assets and US$19 million directed toward expansion projects.
“Since the expansion projects are set to commence, we anticipate needing a total capex of around US$165 million by year-end,” Merly, Director and Corporate Secretary of BREN, told a virtual public presentation on Thursday, October 24, 2024.
BREN, affiliated with Indonesia’s wealthiest businessman Prajogo Pangestu, reported a net profit attributable to its parent entity of US$57.95 million (Rp942.04 billion) in the first half of 2024, marking a slight increase of 0.5 percent compared to the previous year’s US$57.64 million (Rp936.86 billion).
However, BREN’s revenue dipped by 2.3 percent year-on-year, reaching US$290.07 million (Rp4.71 trillion) in the first half of 2024, down from US$296.98 million (Rp4.82 trillion) in 2023.
Revenue from power sales contributed US$132.54 million, smoke sales US$59.99 million, and management fees US$18,000 as of June 2024. Operating lease income added by US$77.69 million, and finance lease income brought in US$19.81 million.
On the expense side, depreciation and amortization costs rose to US$36.94 million, employee compensation and benefits increased to US$21.86 million, and finance costs grew to US$67.9 million in the first half of 2024.
With the capex allocation, BREN aims to strengthen its operational and power generation capacity, sustaining growth amid evolving market demands.
