Pertamina’s profit soared to $2.83b in nine months of 2016
JAKARTA (TheInsiderStories) – Net profit of PT Pertamina, the state-owned energy company, soared 209 percent to US$2.83 billion in nine months of 2016 compared to the same period in 2015 amounted to $914 million, supported by increased operating performance and the efficiency of the various initiatives and breakthroughs of the company.
Pertamina President Director Dwi Soetjipto, said in the press conference, the company efforts in a variety of efficiency measures on the various activities of the initiative and also breakthroughs yielded significant results in improving the company’s net profit.
Dwi added, Pertamina continues to focus on implementing the five pillars of strategic corporate priorities, namely the development of the upstream sector, efficiency in all lines, refineries and petrochemical capacity building, infrastructure development and marketing, as well as the improvement of its financial structure.
By the end of September of 2016 Pertamina posted revenues of $26.62 billion, down about 16.8 percent of revenues in the same period in 2015 due to the decline in crude oil prices.
“The achieving that because Pertamina can improve operational performance, on the other hand there is a decrease costs through efficiencies achieved by successfully cut costs by 27 percent during the first nine months of this year, “said Dwi.
Upstream performance in the third quarter 2016 reached 646 thousand barrels of oil equivalent per day consisting of 309 thousand barrels per day of oil and 1,953 MMSCFD of gas. Such achievement showed an increase of 12.3 percent compared to the same period in 2015. While the achievement of geothermal power production reached 2,233 GWh of electricity equivalent.
Meanwhile, gas transportation reached 393 BSCF with sales reaching 530 BBTU gas company. Breakthrough Project 2016 is expected to reach $1.64 billion by the end of 2016, until the end of the third quarter has been achieved of $1.643 billion. The achievement comes from the efficiency and the creation of added value as well as the company’s breakthrough project.
The cost efficiency of upstream operations amounted to $834 million which became the main advocate for the realization of the Breakthrough Project 2016 reflects the company’s strategy to focus on the fields of work that provides substantial financial impact for the company. Marketing innovations products and superior service and Pertamina, the centralized procurement of hydrocarbon and non-hydrocarbon, emphasis losses from the restructuring program of governance of oil flows, initiatives processing, both the efficiency and optimization of the bottom products, as well as cost cuts headquarters operations generally provide financial impact the achievement of the target.
Meanwhile, sales of fuel and non-fuel increased slightly compared with last year. Fuel sales in the third quarter of 2016 reached 47.77 million KL a slight increase of 4.3 percent from 45.81 million KL in the same period last year. As for non-fuel sales until the end of September 2016 reached 6.64 million KL of up 4.8 percent from the same period in the previous year.
Pertamina has managed to penetrate the various variants of petroleum products, in particular the Special Fuel PERTAMAX Series increased 206 percent from the same period in 2015, became 6.21 million KL.
Infrastructure development continues to do well Pertamina gas infrastructure, processing and marketing. Some projects such as gas pipelines Gresik-Semarang, Muara Karang – Muara Tawar and Tegal Gede has progressed almost 70 percent. Pertamina is targeting RDMP Balikpapan refinery of Phase I was completed in June 2019 and start up in September 2019, while Phase I is completed in mid-2021 to meet the standard Euro 5.
Meanwhile, New Grass Root Refinery Tuban which is a Joint Venture between Pertamina and Russia’s Rosneft will be completed by the end of 2021 with the standard Euro 5. To RDMP Cilacap refinery in cooperation with Saudi Aramco completed in late 2022 with the Euro 5 standard specifications.
“To NGRR Bontang own decision to become Pertamina and tentative assignments to be completed in 2023, also with the Euro 5 standard,” Dwi lid.
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Source: The Insiderstories
Pertamina’s profit soared to .83b in nine months of 2016