Pertamina fails to meet 2010 profit target

State oil and gas company PT Pertamina is unlikely to achieve its net profit target of about Rp 25 trillion (US$=Rp 9,000) this year, given the company?s poor results during the first half of this year.

State Enterprises Minister Mustafa Abubakar said in Jakarta on Friday that the company booked a net profit of about Rp 8 trillion during the first half, or only about 70 percent of the target of Rp 12.5 trillion.

?But we hope that this year Pertamina will be able to book Rp 20 trillion in net profit,? the minister said, adding that his office would also revise the target for this year.

Mustafa attributed the company?s failure to meet the target to the increase in distribution costs for subsidized fuels, the fall in crude oil prices and the delayed in refinery projects.

Meanwhile, Pertamina's president director Karen Agustiawan said that besides the losses from the distribution of subsidized fuels, the failure to meet the target was also caused by the losses from the distribution of liquefied petroleum gas (LPG).

With such a condition, Karen said that this year?s profit would unlikely exceed Rp 14 trillion. (*)