JAKARTA (TheInsiderStories) - State energy firm, PT Pertamina, optimistic to book a net profit of US$800 million by the end of this year also earning before interest, taxes, depreciation, and amortization more than $7 billion. In the first semester of 2020, the company posted a net loss of $767.92 million.
The CEO, Nicke Widyawati, admitted in the first half, the parent of various businesses was affected by the triple shock, like the decline in oil prices, demand, and the weakening of the Rupiah versus the US Dollar. However, she said, entering the second half of 2020, he believed the largest oil and gas producers will generate the net profit.
Last September, President Joko Widodo has injected assets worth of Rp2.1 trillion ($148.94 million) to Pertamina to improve the capital structure of the producer. The policy contained in the government regulation Number 50 Year 2020 on Additional State Capital Participation for the holding firm.
The largest injections transferred to the company is the operation of state property in the form of a natural gas distribution network for former households from the directorate general of oil and gas worth of Rp1.3 trillion. The rest in the form of other instruments.
Currently, Pertamina have applied for a loans around $3 billion through a syndication of six foreign banks. The company is reportedly seeking funding from European banks, BNP Paribas, Citi, Credit Agricole, MUFG Bank, Societe Generale, and Japan’ Sumitomo Mitsui Banking Corp., for business expansion.
In June, Widyawati said, that the company needed $133 billion in funds until 2026 to boost production capacity. For this year, she said the producer would spend around $6.2 billion for a number of national strategic projects. Beside from internal funding, 10 percent of the funds its expecting from project financing, 28 percent from external financing, and 15 percent from equity financing.
The company’ funding options open from stocks (partnership or initial public offering), debt securities (average tenure 1 – 10 years and limited by debt to equity ratio), and banking (average tenure 4 – 5 years). For this year the company plans to spend $6.2 billion, most are for national strategic projects, like the development of refinery.
US$1: Rp14,100
Written by Editorial Staff, Email: theinsiderstories@gmail.com
