PT Pertamina reported booked a net profit US$2.53 billion in 2019, same with last year' number - Photo by Pertamina EP Cepu

JAKARTA (TheInsiderStories) – The largest energy producers in Indonesia, PT Pertamina reported booked a net profit US$2.53 billion in 2019, same with last year’ number. This is the second declining for the company compared to other years due to low price and cost productions.

Based on the official statement, during last year, the economy is still experiencing pressure and affected the Indonesia Crude Price (ICP) at $62 a barrel and the exchange rate around Rp14,146 over the Greenback. Under these conditions, total operating revenues dropped from $57.93 million in 2018 to $54.58 billion in this year, or plunged 5.78 percent with total assets $67.08 billion.

Pertamina has oil and gas fields spread across 13 countries in Asia, Africa, America and Europe. From this field, the producer expect the productions to reach 1 million barrel oil of equivalent per day and 4,000 MMSCFD in 2024. The company also succeed to reduced the value of crude imports by 35 percent and products by 11 percent. This step can save foreign exchange by $7.3 billion, said the statement.

Since the beginning of 2019, the state-owned firm also stopped importing solar and avtur. In addition, the company also has sold avtur of 754 thousand kilo liters and serves domestic and international airlines in 40 airports from 20 countries.

To reduce oil and gas imports, Pertamina also continues to implementing B30. In addition, the holding company will continue to pursue the completion of new refineries. In mid-2019, the oil and gas producers has completed the Cilacap Langit Project and it can improve the quality of fuel products from the Euro 2 standard to Euro 4, and with production volumes increasing from 1 million barrels to 1.6 million barrels per month.

As reported, state own enterprises minister, Erick Thohir was revitalized the company’ businesses structure by set up a sub-holding under the company. There are five sub-holdings that have been formed, namely Upstream lead by PT Pertamina Hulu Energi, Gas managed by PT Perusahaan Gas Negara Tbk (IDX: PGAS), Power & NRE under PT Pertamina Power Indonesia, Commercial & Trading managed by PT Patra Niaga, and Refinery & Petrochemical lead by PT Pertamina International Refinery.

In addition, there is also a shipping company whose operations are handed over to PT Pertamina International Shipping. According to the CEO, Nicke Widyawati, the formation is a strategic step for Pertamina.

“With this subholding, each business will be able to move more quickly and aggressively to develop world-class capabilities and business scale growth that will support Pertamina to become a leading global energy company with a market value of $100 billion,” said the CEO.

She appointed Budiman Parhusip as the CEO of Pertamina Hulu Energi, Ignatius Tallulembang accompanied by deputy CEO Budi Syarif Santoso to lead Pertamina Refinery International, Heru Setiawan as CEO of Pertamina Power Indonesia, Mas’ud Khamid as CEO Patra Niaga, and Erry Widiastona to lead Pertamina International Shipping. While, former directors Dharmawan Samsu and Basuki Trikora Putra appointed as a president commissioners at the sub-holding

For fiscal year 2019, Pertamina plans pay a cash dividend of Rp8.5 trillion ($607.14 million). This dividend increased by 7 percent compared to last year’ amount of Rp7.95 trillion.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com