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Radiant group more expansive.

Backgrounds

The Radiant Utama Group dates back to the establishment of PT. Radiant Utama (PT. RU) in 1975. The shares of the company are 85% owned by PT. Radiant Nusa Investama and 15% by the Sojitz Group from Japan.

PT. RU is the embryo of the company group. RU operates in the service business offering inspection service to determine the quality of production equipment to reduce accident or loss risks

The Radiant Utama has four divisions: 1. Operation Supporting Service to back up operation in its core activities in oil and gas industry from upstream to downstream sectors of the industry. These services include rental and maintenance services, integrated logistics services, operating service and production facility maintenance service. 2. Inspection and certification service to determine the quality of production equipment to reduce accident or loss risks. 3. Offshore drilling and production service both at exploration and production phases. This service includes offshore crane maintenance. 4. Other services including technical training in the oil and gas sector and environment.

Oil and gas core business

PT. Radian Utama Interisco Tbk (RUIS)

The company was established in 1984, starting business in inspection service for oil and gas industry from upstream to downstream sectors. Services begin from offshore operation and maintenance service, inspection & certification and offshore drilling and service.

Among the customers of RUIS are Chevron, BP, ConocoPhilip, Exxon Mobil, PetroChina, CNOOC and Vico.

RUIS uses the latest technology of NDT such as Phased-Array Ultrasonic, Post-Material Identification, Array ultrasonic Post-Material Identification for technical inspection and field certification..

In 2006, RUI launched Initial Public Offering (IPO) selling and listed part of its shares on the Jakarta Stock Exchange now Indonesia Stock Exchange. In April, 2006, RUIS won a new contract to rent jack up rig valued at US$ 110 million to provide offshore production facility (Mobile Offshore Production unit/MOPU).

MOPU (Mobile Offshore Production Unit) constitutes a jack up drilling rig operating offshore for gas production. Currently MOPU is leased by a company which cooperates with Global Process Systems Inc from Dubai and leased again to Santos for use in the Maleo field off Madura, East Java. MOPU was leased out to Santos until 2010.

In 2007. RUIS was named by Total E & P Indonesia to support operation service with a contract value of Rp33.3 billion. The project began in April 2007 and was terminated in March 2009.

RUIS has also been named by BP Berau Ltd to handle the job of maintaining and developing integrated management information system data for the Tangguh project at a value of US$ 2.2 million.

In May 2009, RUIS won a total contract valued at Rp1.5 trillion including Rp33 billion from operation supporting service sector and Rp73 billion from inspection division. In addition, RUIS secured a MOPU [Mobile Offshore Production Unit] contract at the Maleo Block valued at Rp249 billion in 2009.

RUIS cooperates with ship supporting company Fred Olsen from Norway to acquire an oil tanker (Floating Production Storage Oil) at a value of US$500 million in July 2009.

With the purchase of the tanker, the assets of RUIS by March 31, 2009 were valued at Rp627.8 billion or up 37.9% from Rp455.3 billion a year earlier.

This year RUIS will handle two big projects from two oil production sharing contractors (KKKS) in the Malacca strait at a value of US$ 700 million. The projects are floating storage offshore (FSO) projects valued at US$ 500 million and US$ 200 million

Currently, RUIS holds contracts for a number of projects in oil and gas exploration services valued at Rp1.3 trillion. The projects include one of Chevron valued at Rp48 billion and that of ExxonMobile valued at US$30 million for three years.

Toward the end of this year, RUIS will issue bond valued at Rp200 billion. Part of the bond fund will be used to buy FPSO, and the rest for capital spending and business expansion.

RUIS is more aggressive in business expansion. It plans to acquire PT. Petromind, which is a BBM distributor at a price of around Rp2 billion.

PT Supraco Indonesia (SI)

This company operates in the service business offering to provide t explorations and production equipment including offshore crane maintenance service, and offshore drilling service.

SI cooperates with Global Santa Fe International Drilling Inc to establish a joint venture company to operate units of offshore jack up rigs. The two rigs have been leased out to Total E&P Indonesie.

In December 2008, SI bought 0.01% of the shares of PT. Radiant Bukit Barisan from PT Sinergindo Citra Harapan at a price of Rp2.2 billion. PT. Radiant Utama and SI, therefore, became the co-owners of Radiant Bukit Barisan.

In 2009, SI, has won new contracts valued at Rp583 billion and US$ 500,000.

In December 2008, SI acquired 29,999 shares or 99.99% of PT Radiant Bukit Barisan E&P (RBB) at a price of Rp100.000 per share or a total value of Rp2.999 billion. The shares were acquired from PT Radiant Nusa Investama (RNI). In addition, SI acquired a share of RBB at the same price that it became a 99.99% owner with 0.01% held by RNI.

The transaction caused conflict of interest as RNI is a 61.5% shareholder of RUIS and SI was 99.99% owned by RUIS. RBB. The winner of a tender to develop an oil and gas working area in West Sumatra and Riau with a share of 51% with 49% for partner PC (SKR) International Ltd (PC-SKR).

Based on the Production sharing contract (PSC) with the Upstream Oil and Gas Regulator (BP Migas), the consortium of RBB and PC-SKR has a working area of 3,897.07 sq. kilometers believed to have oil and gas reserves.

In 2009, SI already won contracts valued at Rp700 billion, including a contract of Rp215 billion in East Kalimantan and one valued at Rp160 billion in Sumatra from KKPS.

PT. Radiant Nusa Investama (RNI)

This company is an investment holding and a 58.82% shareholder of RUIS. With PT Cahaya Sumber Energi and PT Sinergindo Citra Harapan holding the rest respectively 21.57% and 19.6%.

In 2008, RNI formed a consortium with PC (SKR) International Ltd to win a tender to develop South West Bukit Barisan block at a price of US$ 7.5 million.

This year, RNI will soon carry out oil and gas explorations in the Singkarak Block in West Sumatra. The contract for exploration work is for three years. Exploitaitons could be made if in one or two years oil or gas is found in the block.

The Singkarak block has a gas reserve of 174 billion cubic feet and oil reserve of 34 million barrels. The exploration concession areas in the Singkarak block total 4,000 sq. Kilometers in covering 5 district areas. The five areas include the regencies of Sijunjung, Solok Selatan, Dharmasraya and Tanah Datar. And the city of Sawahlunto.

Currently, the Singkarak Block, which has been renamed South West Bukit Barisan block has been offered by the government to investors since 1972 In 1972-1986, explorations were already made by PT Caltex (now Chevron), and then by Petrocorp Exploration Inda in 1992, Apache Oil Sumatra in 1994 and PT Expan Nusantara in 2001.

However, after being explored, no company proceeded with exploitation as it was found not feasible. At that time oil and gas was not as expensive as at present.

Financial performance

The financial performance of RUIS has improved form year to year. In 2008, RUIS chalked up Rp1.17.trillion in income with net profit at Rp30 billion. In 2009, RUIS hopes to post a 25% increase in income to Rp1.5 trillion with net profit up 11% to Rp33 billion

The targets are based on the trend in the oil market. In 2009, demand from the oil and gas sector is expected to increase. Currently the prices of crude oil exceed US$ 60 per barrel, that it is expected work would start in the next one or two months at projects previously postponed. Demand for the service of the company, therefore, would increase. Around 90% of the customers of RUSI are oil and gas companies. Development s in the oil market, therefore, will have its effect on the business of the company.

For example, when the oil price fell to US$ 30-US$40 per barrel, many oil and gas projects were postponed. The activities of the company, therefore, were only to carry on job in mines already in operation. The volume of work was reduced to 60% of the normal level.

This year, RUIS allocates Rp100 billion for capital spending. The fund will be used to replace old sets of equipment with ones with new technology especially for inspection work. Around 25% of the capital expenditure will be in internal fund and 75% in external funds including loans form banks and financing companies. The company has held loan talks with a number of banks including ANZ-Panin Bank.

The market strategy of RUIS will focus on becoming operation support system especially with the absence of income from Santa Fe Supraco Indonesia (SFSI), after Global Santa Fe got merged with Transocean, which chose to hand over business to Supraco Deep Water (SDW).

Radiant Utama Group

Parent company : PT. Radiant Utama

Address : Jl. Kapten Tendean No. 24 Pela Mampang Jakarta Selatan 12720

Phone : (021) 7191020

Fax : (021) 7191002

Website : www.radiant-utama.com

Number of companies : 5 companies

Lines of business :--supporting services for oil & gas industry --investment holding --oil & gas equipment services --oil & gas maintenance services

Members of Radiant Utamai Group

1. PT. Radiant Utama Interinsco Tbk (supporting services for oil & gas industry)

2. PT. Radiant Nusa Investama (investment holding)

3. PT. Supraco Indonesia (oil & gas equipment services)

4. PT. Radiant Utama (investment holding)

5. PT. Radiant Tunas Interinsco (land transportation, oil & gas maintenance services)
Financial Highlights
PT. Radiant Utama Interinsco Tbk

Description 2008 2007
 (31st Dec) (31st Dec)

ASSETS
a. Current Assets 416.334 349.358
b. Non Current Assets 202.179 63.266
Total Assets 618.513 412.624

LIABILITIES
a. Current Liabilities 209.775 121.440
b. Non Current Liability 207.169 111.038
c. Minority interest 11 9
d. Equity 201.558 180.135
Total Liabilities + Equity 618.513 412.623

REVENUES
a. Revenue 1.178.572 890.978
b. Net Profit 30.073 35.960

Source : RUIS
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Title Annotation:COMPANY PROFILE; PT. Radiant Utama
Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Geographic Code:9INDO
Date:Jul 1, 2009
Words:1732
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