Pertamina?s net profit likely lower in 2008
Tuesday, October 2 2007 - 02:15 AM WIB
State oil and gas firm PT Pertamina said that its net profit may decline around 7.7 percent – 17.48 percent to between Rp 17 trillion and Rp 19 trillion in 2008 compared to projected figure of Rp 20.6 trillion in 2007.
The decline will be attributable to the expected drop in the oil price in the world market next year.
Pertamina’s president director Ari H. Soemarno said that the oil price in the world market was predicted to go down next year, with the average oil price of US$60 per barrel.
“Dividend that we shall pay to the government will thus decrease. This year, we expect to pay around Rp 9 trillion in dividend, or between 40 percent and 50 percent of our projected net protif of Rp 20.6 trillion," Ari said.
Meanwhile, Pertamina’s director for financial affairs Frederick Siahaan said that the company’s capital expenditures are targeted to increase to Rp 20 trillion in 2008 from between Rp 10 trillion and Rp 12 trillion in 2007.
He said more funds will be needed to finance development projects in the upstream sector, including Cepu Block, Donggi-Senoro Block and Pondok Tengah block, which will lead to the increase in the company’s capital expenditures in 2008. (godang)