The transformation efforts of PT Wijaya Karya (Persero) Tbk (WIKA), particularly in project execution excellence, have begun to yield results as planned by the Company. This is reflected in the improvement of the Company's core operational performance. The Gross Profit Margin (GPM) of the Infrastructure & Building and EPCC segments reached 8.4% and 9.9% respectively in the second quarter of 2024, an increase from the same period last year, which was 8.2% and 7.9%.
According to the Company's consolidated financial statements as of June 30, 2024, WIKA recorded sales of IDR 7.53 trillion. The main contribution to these sales came from the Infrastructure & Building and Industrial segments, each accounting for more than 30%, followed by EPCC with 16.5% and Property with 18.3%.
"The strengthening of WIKA's operational performance is a result of the Company's efforts in implementing lean construction and digitalization, as well as striving for operational efficiency across all ongoing projects," said Agung Budi Waskito (BW).
The Company also successfully reduced receivables by 15.3%, from IDR 8.40 trillion in 2023 to IDR 7.11 trillion in the second quarter of 2024. This aligns with the Company's serious efforts to accelerate receivables collection, one of the key steps in the 8-stream recovery plan.
Reflecting on the Second Quarter 2024 Financial Report, Agung BW stated that the support from stakeholders and the Government in the Company's financial recovery efforts has made the Company optimistic about facing future challenges. The Company aims to maintain the trust of stakeholders and the Government by continuing to implement transformation and the 8-stream recovery plan while demonstrating excellence in executing every task.
"Improvements in the Company's performance are also evident in WIKA's improving Gearing Ratio and Debt to Equity Ratio (DER), which were recorded at 2.31 times and 3.23 times in the second quarter of 2024, down from 3.86 times and 5.89 times in the second quarter of 2023. This achievement is due to the support of all stakeholders and the Government in strengthening the Company's capital structure, as well as the Company's continued focus on cash management," explained Agung BW.
The trust placed in WIKA by project owners remains strong, as the Company has secured a contract for the construction of the new Jetty 1 at the Integrated Terminal Manggis, Bali. Agung BW emphasized that the recovery and improvement measures currently being implemented by WIKA will continue sustainably to accelerate the Company's efforts to remain resilient and grow well in the future.
WIKA Secures Contract for New Jetty 1 Construction at Integrated Terminal Manggis
WIKA has been entrusted with the construction of the new Jetty 1 at the Integrated Terminal Manggis, Bali. The project, valued at IDR 475 billion, was awarded to WIKA by PT Pertamina Patra Niaga.
The construction of the new Jetty 1 at the Integrated Terminal Manggis aims to optimize the loading and unloading capacity of the Jetty at Terminal Manggis, as well as enhance the reliability and stock resilience of fuel oil (BBM) in Bali and the surrounding small islands.
In its execution, WIKA is responsible for the construction of the jetty, from land preparation to operation, with a target completion date in 2026.
This project further solidifies WIKA's competence in supporting EPCC infrastructure in Indonesia.