JAKARTA, RAKYAT NEWS – PT Barito Renewables Energy Tbk (BREN) has announced a substantial capital expenditure (capex) budget of USD 165 million, equivalent to approximately IDR 2.57 trillion, to be utilized by the end of 2024. This investment is aimed at enhancing the company’s operational capabilities and facilitating future growth.

According to Merly, the Director and Corporate Secretary of BREN, the capex will primarily support the maintenance of existing operational assets. Additionally, a significant portion of the budget will be directed toward expanding the company’s power generation capacity, reflecting its commitment to renewable energy initiatives.

As of September 2024, BREN has already allocated USD 52.4 million of the planned capex. Merly indicated that this amount has been divided between existing operational maintenance, which received USD 33 million, and development projects that accounted for USD 19 million.

Looking ahead, Merly expressed confidence in the company’s expansion plans, stating that they anticipate the total capex requirement to reach approximately USD 165 million by year-end. This strategic investment aims to position BREN for growth in a competitive market.

In terms of financial performance, BREN reported a net profit attributable to the parent company of USD 57.95 million (IDR 942.04 billion) for the first half of 2024. This figure represents a slight increase of 0.5% compared to USD 57.64 million (IDR 936.86 billion) in the same period in 2023.

However, the company experienced a decline in total revenue, which fell to USD 290.07 million (IDR 4.71 trillion) in the first half of 2024. This marks a 2.3% decrease from USD 296.98 million (IDR 4.82 trillion) during the previous year, highlighting the challenges in the current market landscape.

The revenue breakdown reveals that sales contracts from third parties contributed USD 132.54 million, while smoke sales accounted for USD 59.99 million. Additionally, operational lease income brought in USD 77.69 million, showcasing diverse revenue streams despite the overall decline.

Increased operational costs were also noted, with depreciation and amortization expenses rising to USD 36.94 million. Furthermore, employee compensation costs increased to USD 21.86 million, and financial expenses rose to USD 67.9 million during the same period, indicating the need for careful financial management as the company progresses.

BREN’s significant investment in capital expenditure underscores its commitment to enhancing operational capabilities and positioning itself for future growth in the renewable energy sector. (Uki Ruknuddin)