Pertamina?s 2010 audited net profits reach Rp 16.77 trillion

PT Pertamina (Persero) reported a 3 percent increase in audited net profits to Rp 16.77 trillion (US$1.96 billion) in 2010 despite the financial losses suffered by the company on the sales of subsidized fuel and non-subsidized liquefied petroleum gas (LPG), the company announced on Wednesday.

In the audited 2010 financial report which was formally approved by shareholders during an annual shareholders meeting in Jakarta on Tuesday, Pertamina said it suffered losses of Rp 2.5 trillion from the distribution of the subsidized fuel, and another Rp 3.24 trillion from the sales of non-subsidized LPG.

The company?s spokesman Mochamad Harun said the losses in the distribution of the subsidized fuel occurred because the margin given by the government was too low to cope with the distribution costs, while the losses in the sales of the LPG occurred because the prices were far below the market prices.

The shareholders also agreed in the meeting to pay out Rp 7.12 trillion of the net profits as dividends to the government, he said, adding that in addition to the dividends, the shareholders also approved the company?s long-term business plan, which showed net profit target of Rp 54 trillion in 2015.

The shareholders also approved the change in Pertamina?s corporate vision from Word Class National Oil and Gas Company to World Class National Energy Company. ?The change indicates the company?s strong commitment in development of alternative and renewable energy, Harun added.

In 2010, Pertamina?s oil production rose 9 percent to 70 million barrels of oil, while gas production increased 6 percent to 532.8 billion standard cubic feet (BSCF). If combined, the oil and gas production reached 443.79 million barrels oil equivalent per day (MBOEPD) in 2010.

In 2009, the oil and gas production totaled 412.94 MBOEPD, which comprised 64.40 million barrels of oil and 502.05 BSCF of gas. (godang)