Dovre Group Plc Stock exchange release January 3, 2019 at 9.10 am
SaraRasa has restructered its long term debt
Dovre Group's joint venture SaraRasa Bioindo Pte. Ltd.'s (the Company) fully owned subsidiary company PT SaraRasa Biomass (the Factory) has agreed with its debtor to restructure its long term debt with the following financial implications:
Due to restructuring of the loan, the Company will book a one-off net income of about 800,000 euros for the fiscal year of 2018. Also, according to the restructuring terms, the Company expects cumulative interest payment savings during the years 2019-2025 to be about 600,000 euros. The amount of future interest payment savings is indicative and subject to changes in prevailing interest rates and repayment schedule. Savings in the interest expenses has allowed the company to purchase a third pellet mill, which is expected to increase the production by 35-50% starting in the summer of 2019.
Even without the one-off positive loan restructuring item, the Company expects its net result after taxes to be clearly positive for the fiscal year of 2018. Sales contracts for the first half of 2019 indicate that positive results will continue.
Because of a new share issue, Dovre's ownership in the Company will decrease from about 20.3% to about 19.9% and therefore Dovre Group PLC will stop reporting the Company's numbers in its financial reporting starting January 1, 2019 due to the Company becoming a financial investment. This will give both companies savings in financial reporting and ability to concentrate on their core businesses.
For further information, please contact:
SaraRasa Bioindo Pte. Ltd.
Ilari Koskelo, Chairman of the Board
Dovre Group is a global provider of project management services. Dovre Group has two business areas: Project Personnel and Consulting. Dovre Group has offices in Canada, Finland, Norway, Russia, Singapore and the US, and employs more than 500 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V).
SaraRasa Bioindo Pte. Ltd., a pellet producer using residual materials from wood working industries, owns and operates a wood pellet production line in Surabaya, Indonesia. SaraRasa’s main shareholders are Navdata Oy, Dovre Group Plc and Finnfund.