Pertamina?s net profit down by 24%

Petromindo

State-owned oil and gas firm PT Pertamina said that net profit in the first quarter of this year declined by 24 percent despite higher oil price and output.

Pertamina said in a statement Wednesday that while Indonesian Crude Price (ICP) jumped by around 69 percent to US$51.03 per barrel during the first quarter of this year, the company?s revenue only increased by 19 percent to $10.15 billion from $8.55 billion in the first quarter of last year.

?Oil price condition remains volatile, but Pertamina managed to relatively maintain growth in operating performance in various business lines. The crude oil price volatility has significantly affected the company?s financial performance as reflected in the unbalanced increase in crude price compared to revenue increase and other (indicators of) financial performance,? said Pertamina President Director E. Massa Manik in the statement.

EBITDA in the first quarter of this year reached $1.89 billion, lower than $2.18 billion in the same period of last year, while net profit dropped by 24 percent to $0.76 billion from $1.01 billion, the company said.

Realized capital expenditure in the first quarter of this year reached $1.1 billion, higher than $0.36 billion in the same period of last year as investment plans in 2016 were realized during the January-March period of this year, mostly in upstream sector.

Oil output in the first quarter totaled 337,000 bpd, or 10 percent increase compared to 312,000 bpd in the same quarter of last year. Meanwhile, gas production increased by 2 percent to 2,010 mmscfd from 1,975 mmscfd. Overall, oil and gas production increased by 6 percent in the first quarter.

Fuel oil sales volume increased by 5 percent to 15.85 million kilo liters. Sales of non-subsidized products of Pertalite and Pertamax accounted for 55.7 percent of the total sales of Pertamnina gasoline series. Sales of non-fuel products including domestic gas and petrochemicals increased by 6 percent to 3.68 million kl.

Meanwhile, processing volume declined by around 8 percent, the company said.

Editing By Reiner Simanjuntak