Pertamina says new initiatives result in $608.41m financial impact

State-owned oil and gas firm PT Pertamina said that the various new initiatives of cost saving and efficiency measures implemented throughout last year to help cope with the oil price drop has resulted in financial impact worth US$608.41 million, exceeding the initial target of $500.4 million.

?In the current difficult period due to oil price drop, Pertamina continues to make breakthroughs including in terms of efficiency,? said Vice President for Corporate Communications, Wianda Pusponegoro in a statement Monday.

The various new initiatives for efficiency and cost saving included procurement centralization (non-hydrocarbon), change in procurement and sales of oil and products, optimization of supporting assets, and cash management program.

Wianda said that through the new initiatives, the company enjoyed positive financial impact in the form of cash-in and cost saving. The cash management initiative, for instance, resulted in more efficient interest with financial impact worth $27.3 million.

Editing by Reiner Simanjuntak