JAKARTA (TheInsiderStories) – The country’ largest power producer, PT Perusahaan Listrik Negara (PLN) cut its 2020′ revenues target by 14.6 percent caused the COVID-19 outbreak, said the CEO on Wednesday (04/22). The initial targets Rp301 trillion (US$19.42 billion).
In the virtual hearing with the parliament, CEO of PLN, Zulkifli Zaini explained, every 1 percent reduction in electricity consumption, the potential loss of income was Rp2.8 trillion. He said, the pandemic had an impact on the electricity system in general.
“We are currently in the process of submitting a revised budget plan to our shareholders,” he told the parliament’ member by adding PLN will also postpone some projects that have not received funding.
As reported, the government has announced to cut power price to small class income worth of $24.9 billion in response to the COVID-19 outbreak that included electricity discounts and waivers.
In the third quarter (3Q) of 2019, PLN posted a net profit of Rp10.84 trillion. The performance was better than the same period of last year which booked a loss of Rp18.48 trillion. The increase in net profit was contributed by the government’ compensation payment beyond electricity subsidies of Rp19.74 trillion. In 2018, PLN did not get this compensation.
Besides that, the government also added electricity subsidies of Rp40.64 trillion in September 2019. The electricity subsidies were 2.17 percent bigger than last year of Rp39.77 trillion.
Without calculating the electricity subsidies, the PLN‘ performance in the 3Q of 2019 was also better than last year. Although still booked a business loss of Rp22.6 trillion in the third quarter of 2019, but it improved from last year of Rp23.08 trillion.
The performance PLN was also triggered by the profit of foreign exchange rates of Rp4.37 trillion, better than last year which loss of Rp17.32 trillion. Also, contributed by the increase in electricity sales of Rp189.23 trillion in September 2019. The electricity sales increased by 4.27 percent from last year of Rp181.47 trillion.
PLN also booked revenue of Rp209.29 trillion, which increased 4.17 percent from last year of Rp200.91 trillion. Furthermore, the asset was recorded of Rp1,549 trillion, higher than last year of Rp1,492.49 trillion.
On the other hand, PLN received a syndicated loan of US$1 billion from eight foreign banks. Most of the funds will be used to complete the 35,000-megawatt power (MW) plant projects. Eight banks are DBS Group, Korea Development Bank, MUFG Financial Group, Oversea-Chinese Banking Corp, Sumitomo Mitsui Financial, United Overseas Bank, Bank of China and Cathay United Bank. Each bank distributed loans worth $128 million.
The state-owned company is currently intensifying the construction of a new transmission network in the Java – Bali interconnection area to anticipate mass power outages throughout the region.
So far, PLN had obtained funding through the issuance of global bonds worth $1.5 billion. Same as the syndicated funds, funds from the issuance of global bonds are also used to prepare electricity infrastructure.
The global bond consisted of three tranches, which was $500 million with 10 years and three months tenor, $500million with 30 years and three months tenor, and $500 million with a 12 years tenor, and coupon rates of 3.37 percent, 4.37 percent, and 1.87 percent, respectively.
The funds were expected to increase the electrification ratio to 100 percent by 2020. Additional funds were also expected to be able to accelerate the development of frontier, outermost, and disadvantaged regions.
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