Mitra Energi expects revenue to rise by 20%

By Nova Farida

IDX-listed PT Mitra Energi Persada Tbk, which is engaged in trading and distribution of oil and gas through downstream pipelines, said revenue this year is expected to increase by 20 percent following the amendment and extension of gas sales and purchase agreement with upstream producer PT Medco E&P Indonesia.

This was said by Mitra Energi President Director Ivo Wongkaren on Wednesday. Ivo said that under the new contract, the gas volume has been increased by 30 percent to 5 bbtud from 3.7 bbtud, and that the contract period has been extended from five years to 10 years.

?The higher gas allocation volume will be realized in September-October, so improvement in (financial) performance (of the company) will start this year,? he said.

Mitra Energi through subsidiary PT Mitra Energi Buana signed an amendment of its initial gas sales and purchase agreement with Medco in 2012. The new five-year contract, which started December 2012, saw gas sales volume increased to 3.7 bbtud from 2.5 bbtud set under the initial agreement for the distribution of gas to consumers in Muara Enim regency, South Sumatra Province.

Elsewhere, Ivo said the company has allocated capital expenditure of US$13 million this year, to be used for expansion of its logistic business to cover areas outside South Sumatra.

The company last year booked a revenue of Rp 181.7 billion, a 8.4 percent decrease from Rp 198.4 billion in the previous year. Net profit, however, increased by 10.4 percent to Rp 19.1 billion.

The company last year completed construction of a 25-km gas pipeline to serve industries in South Sumatra.

Editing by Reiner Simanjuntak