Pertamina's profit could be lower than initial projection

State owned oil and gas company Pertamina's profit is expected to be lower than its initial target this year despite the change in the company's status into a full business entity, Kompas reported on Tuesday.

The daily said that the actual profit of this year would be quite lower than the Rp 5.38 trillion projected in its 2004 revenue and budget plan (RKAP). According to a document obtained by the daily, the estimated actual profits to be raised from the company's subsidiaries, for instance, could only reach Rp 166 billion, below the initial target of Rp 235 billion.

Pertamina booked a profit of Rp 12 trillion in 2003, down from Rp 14 trillion in 2002.

Pertamina's annual operational spending is estimated to increase sharply to Rp 112.72 trillion in 2004, up from the initial target of Rp 75.64 trillion. Meanwhile the actual investment spending is projected to decline to Rp 3.71 trillion, compared to the initial plan of Rp 5.95 trillion.

The realized investment spending in the upstream sector is estimated to only reach Rp 2.48 trillion, much lower than the initial target of Rp 4.28 trillion. The actual investment in the processing industry is about Rp 272 billion, far lower than the initial target of Rp 436 billion.

In the marketing department, the actual investment is expected to reach Rp 946 billion, far below the initial target of Rp 1.19 trillion. (*)