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Pertamina books $753 million net profits in Q3

Jakarta Post - November 7, 2019

Norman Harsono, Jakarta – State-owned energy company Pertamina booked US$753 million in net profits during the January-Sept period this year.

The company's net profits are 14 percent higher than the $660 million booked in the first six months of the year.

Pertamina finance director Pahala Mansury told reporters in Jakarta on Thursday that the recorded net profits did not include the government funds used to compensate Pertamina for selling subsidized fuel and liquefied petroleum gas (LPG) below market rates.

"So our profits are around $1.7 billion if you include potential revenue from the compensation but the compensation needs to be audited by the BPK [Supreme Audit Agency] and approved by the Finance Ministry beforehand," he said.

Pahala added that the company had raised 45 percent of the targeted investment amount of $4.3 billion this year. Most of the investment ($2.5 billion) would be allocated for upstream developments.

"Normally our upstream investments account for 80-90 percent of total investments," he said, "In the downstream, our biggest investment [this year] is in refineries, where we aim to invest $800 million by year-end."

In terms of geographic location, the company's heaviest investment this year was in developing the gas-rich Mahakam block in East Kalimantan, which consumed between $900 million and $1 billion.

Pertamina did not reveal its third quarter net profits last year but State-Owned Enterprises (SOEs) Ministry officials said they were less than Rp 5 trillion ($356.24 million).

Source: https://www.thejakartapost.com/news/2019/11/07/pertamina-books-753-million-net-profits-in-q3.html