PLN posts Rp. 3.4 trillion net loss in Q1

State-owned electricity company PLN posted a net loss of 3.4 trillion rupiah (US $1= Rp. 11,400) in the first quarter of the year and expects it to expand to IDR4.43 trillion for the whole year, according to the company?s executive on Monday.

PLN?s director of Finance Parno Isworo said he expected operating revenue to amount to Rp.26.97 trillion this year, but operating costs would amount to Rp 35.96 trillion, surpassing operating revenue.

He attributed the company's bad fortune to the high U.S. dollar exchange rate against the rupiah.

The company sells electricity in rupiah, but most of its costs are in dollars.

PLN's net loss this year will be much lower than last year's net loss of over Rp.24 trillion due to debt relief the government granted the company last week.

The government last week approved PLN's RP.34.07 trillion debt-restructuring plan, of which RP.5.288 trillion debts in principal will be treated as a new 20-year loan, plus a two-year grace period.

The remaining RP.28.78 trillion debts will be written off in a bid to keep the heavily indebted electricity company afloat. (*)