PLN financial performance improves despite big losses

PT Perusahaan Listrik Negara (PLN) suffered a net loss of Rp 13.3 trillion (1US$ = Rp 11,530) in 2008 despite a significant increase in the company?s profits from operation to Rp 3.7 trillion from Rp 2.5 trillion in 2007, Kompas reported on Friday.

PLN?s vice president Rudiantara said in Jakarta on Thursday that the company?s financial performance showed an encouraging improvement last year despite the huge net loss, the largest recorded by state-owned companies in the year.

Of the Rp 13.3 trillion losses, Rp 10.4 trillion is foreign exchange loss, he said. In 2007, the firm booked a net loss of Rp 5.6 trillion, about Rp 900 billion of which was contributed by foreign exchange losses.

?The foreign exchange losses were recorded only for accounting reason,? he said. ?The financial report showed as if we had paid all our foreign debts, but in reality it did not occur because none of the debts were fully paid in 2008,? he added.

As of December, 2008, PLN?s US dollar denominated debts were worth Rp 35 trillion, and those in yen currency were worth Rp 23 trillion.

Another indication of the improvement of the company?s finance was also reflected on the increase in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) which rose from Rp 13.2 trillion in 2007 to Rp 14.6 trillion in 2008, Rudiantara said.

?The market showed our EBITDA, not profit or loss,? he said. (*)