PT Perusahaan Listrik Negara (PLN) reported the net profit drop sharply by 62.69 percent to Rp4.32 trillion (US$288 million) in 2019 influenced by high operating costs - Photo by the Company

JAKARTA (TheInsiderStories) – The largest power producer in Indonesia, PT Perusahaan Listrik Negara (PLN) reported the net profit drop sharply by 62.69 percent to Rp4.32 trillion (US$288 million) in 2019 influenced by high operating costs. But, the company’ revenues rose 4.67 percent to Rp285.64 trillion compared to previous year.

Based on the official statement releases on Monday (05/18), the company also reported operating profit after government subsidies of Rp44.16 Trillion and EBITDA Rp81.66 Trillion. The sales volume amounted to 245.52 Terra Watt hours (TWh) or an increase of 4.65 percent compared to the same period of last year of 234.62 TWh.

The increase in sales volume, said the producer, is supported by the growth in the number of customers, which until the end of December 2019 has reached 75.7 million with a connected power of 136,600 megavolt ampere (MVA), or an increase of 3.8 million customers with a power of 7,700 MVA from the position at the end of December 2018 at 71.9 million customers .

Operationally, until the end of 2019, the company has succeeded in increasing the installed capacity of the plant by 4,588 Mega Watt (MW) from 57,646 MW in 2018 to 62,234 MW in 2019. The transmission network especially for the evacuation of operating power plants has increased by 6,211 kilometers (km) from 53,606 km in 2018 to 59,817 km until the end of 2019, and additional substation capacity of 17,507 MVA from 131,164 MVA to 148,671 MVA.

Last April, CEO of PLN, Zulkifli Zaini announced that PLN cut its 2020′ revenues target by 14.6 percent caused the COVID-19 outbreak. He said, every 1 percent reduction in electricity consumption, the potential loss of income was Rp2.8 trillion. The company also has plans to postpone some projects that have not received funding.

Recently, 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 notes 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.

US$1=Rp15,000

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