Shareholders approve up to USD 80 million equity injection into subsidiary, PT Panca Amara Utama

Shareholders approve up to USD 80 million equity injection into subsidiary, PT Panca Amara Utama

Jakarta, 27 May 2013 – PT Surya Esa Perkasa Tbk. (IDX: ESSA) (“SEP” or the “Company”), is pleased to announce that the Company’s shareholders have approved an equity injection of up to USD 80 million into its subsidiary, PT Panca Amara Utama (“PAU”).

In its Annual General Meeting of Shareholders for Financial Year 2012 (“FY2012”) held on Monday, 27 May 2013, the Company’s shareholders also approved:
1. The management’s Annual Report for 2012, including the Board of Commissioner’s Report and Financial Statements for FY2012;
2. The management’s proposal to allocate all Net Profit towards Retained Earnings, to be used towards development of LPG expansion & PAU;
3. The appointment of KAP Osman Bing Satrio & Eny as Independent Auditors for FY2013;
4. The delegation of the Board of Commissioners’ and Board of Directors’ salary and honorarium to the Company’s Board of Commissioners.

The management informed shareholders that its plans to expand LPG production by 55% has commenced, with an Equipment and Services Agreement with Enerflex Ltd., Canada. The total capital expenditure (“CAPEX”) for expansion is estimated to be USD 21 million, with production expected to increase from 120 tons per day (“TPD”) to 185 TPD starting in Q3 2014.

The Company’s subsidiary, PAU, is now entering the final stages towards achieving financial closure. PAU has completed negotiations with gas suppliers for its Gas Sales Agreement (“GSA”), and expects the GSA to be signed within Q2 2013. In line with PAU’s quick development progress, the Company will be required to inject up to USD 80 million equity into PAU within the year.

PAU has commenced building its 700,000 MT per year ammonia facility, and is expected to begin commercial production in Q3 2015. With an estimated project cost of USD 750 million, the International Finance Corporation (“IFC”) is leading PAU’s USD 500 million debt financing arrangement. Of the remaining USD 250 million equity requirement, the Company will be required to inject up to USD 132 million total equity.

For further information please contact:
Kanishk Laroya
Corporate Secretary & Head of Investor Relations
Tel: +62 21 5790 3701
Fax: +62 21 5790 3702
Email: corporate.secretary@sep.co.id