PLN books Rp 1.5 trillion losses

State owned electricity company PT Perusahaan Listrik Negara (PLN) booked losses amounting to Rp 1.5 trillion in 2007, compared to a profit target of Rp 3 trillion, Kompas reported on Wednesday.

The losses were caused by the increase in oil fuel consumption and rise in oil prices, according to PLN?s President Commissioner Alhilal Hamdi.

Alhilal said on Tuesday that PLN consumed 10.02 million kiloliters of oil fuel in 2007, much higher than the target of 7.65 million kiloliters, due to the lack of gas and coal supplies. The lack of gas and coal supplies forced the firm to maximize the operation of its diesel power plants as well the diesel unit of its combined cycle power plants to maintain power supplies.

As a result, PLN?s spending for oil fuel rose to Rp 45.97 trillion from the initial target of Rp 38.21 trillion last year.

Gas supplies to PLN?s power plants reached 144,495 million British thermal unit (MMBTU) last year, compared to the year?s target of 149,206 MMBTU. Coal supplies reached 21.81 million tons compared to the target of 22.37 tons.

?The problem at coal-fired Suralaya power plant since May 2007 caused a drop in power supplies by 600 Megawatt. Gas supplies to the Cilegon power plant were lower than expected and there were problems in the supplies of coal to Cilacap and Tanjung Jati B power plants,? Alhilal said.

PLN?s operating costs rose to Rp 107.05 trillion last year, higher than the target of Rp 100.73 trillion, while operating revenue stood at Rp 110.89 trillion.

Operating profit stood at Rp 3.84 trillion. After being deducted with taxes, the operating profit resulted in a loss of Rp 1.51 trillion, according Alhilal. Last year, the firm booked a loss of Rp 1.93 trillion. (*)