Pertamina posts strong growth in profit, production

31 August 2016, Week 34 Issue 540

Pertamina’s net profit more than trebled in the first half of 2016 from a year earlier, while the Indonesian NOC’s production jumped 12% year on year in the first seven months.

Pertamina posted a net profit of US$1.83 billion in the January-June period, up 221% from a net profit of US$570 million in the same six-month period of 2015. The robust growth came even as revenue tumbled 21% to US$17.19 billion in the first half of 2016, compared with US$21.79 billion a year earlier, on the back of persistently low global oil prices.

Speaking at a press briefing on August 25, Pertamina’s CEO, Dwi Soetjipto, said the company’s strenuous cost-cutting efforts was a main contributor to the sharp profit increase.

Pertamina initially predicted spending cuts of about US$838 million in the first half of this year, but it managed to exceed that target, cutting outgoings by US$1.2 billion, the Jakarta Globe quoted Dwi as saying.

Meanwhile, Pertamina also reported last week that its oil and gas production surged 12% to 640,000 boepd in the first seven months of 2016 from 571,000 boepd a year earlier.

Of that amount, 256,000 boepd came from Pertamina EP, one of Pertamina’s upstream subsidiaries. Pertamina Hulu Energi produced 189,000 boepd in the period.

Through its subsidiary Pertamina International EP (PIEP), Pertamina also produced 119,000 boepd of oil and gas abroad in the seven months, up 8% from 110,000 boepd in the same period of 2015.

Edited by

Andrew Kemp

Editor

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