JAKARTA, Jun 23, 2022 – (ACN Newswire) – The upstream sector accounted for the largest share of state-owned oil and gas firm PT Pertamina's (Persero's) net profit as Indonesian crude prices (ICP) soared in 2021.

"The overall profit earned is a combination of the six sub-holdings and their subsidiaries, but the largest contribution to the net profit comes from the upstream sector due to the windfall from the increase in ICP prices," acting vice president of corporate communications at Pertamina, Heppy Wulansari, said in Jakarta on Tuesday.

Reporting its 2021 fiscal year performance to the government, which is a shareholder in the company, Pertamina said it scored a net profit of Rp29.3 trillion.

The majority of this profit was obtained from the upstream sector's revenue, which increased sharply. Meanwhile, the downstream sector experienced losses due to the increase in crude oil prices and as Pertamina's fuel prices remained below the market price.

This was an advantage for Pertamina, which has an integrated business from upstream to downstream, which allows cross-subsidies. Thus, it could maintain the balance between profits and public service bonds.

Wulansari said that Pertamina's financial performance was positive, with almost doubled profit in the 2021 fiscal year.

This profit was consolidated profit from all Pertamina business lines from upstream, processing, and downstream.

As for the downstream sector, especially fuel and LPG marketing and distribution, at this time, the status is still at a loss due to the high cost of fuel production as the largest component is crude oil.

"However, Pertamina really appreciates the government's full support through the payment of assignment fuel compensation and the addition of energy subsidies in the 2022 State Budget. This is very meaningful to maintain people's purchasing power and encourage economic recovery," Wulansari said.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Suharto (c) ANTARA 2022

Copyright 2022 ACN Newswire. All rights reserved. http://www.acnnewswire.com

JAKARTA, Jun 23, 2022 – (ACN Newswire) – The B20 Energy, Sustainability & Climate Task Force, led by state-owned oil giant Pertamina Group, put forth three recommendations to support realization of the target of net-zero carbon emissions.

"Climate change sustainability is something that we must strive for in the future. For this reason, the B20 Energy, Sustainability, and Climate Task Force has compiled policy recommendations that focus on three recommendations, with 12 policy actions that call for global cooperation," Deputy Chair of B20 Energy, Sustainability, and Climate Task Force Agung Wicaksono said in a statement obtained here on Thursday.

He delivered the statement during the hybrid dialogue forum of Energy Transition in Growth Markets on Tuesday (June 21).

This forum is one of the events conducted by the Task Force Energy, Sustainability & Climate (ESC) and the Task Force Future of Work and Education in collaboration with the Accenture International Utilities and Energy Conference held on June 21-23, 2022, in Rome, Italy.

Themed "Maximizing the Value of the Energy Transition in Growth Markets and Paving the Way to B20," this forum discusses the future of the energy industry in an era that prioritizes sustainability and low emissions for a green future and a more sustainable planet.

The three policy recommendations include accelerating the transition to sustainable energy use by reducing carbon intensity in different ways. The second is ensuring a just, orderly, and affordable transition to sustainable energy use. The third recommendation pertains to increasing energy security, so that consumers can access and consume clean and modern energy.

"We are working hard to ensure there is an alignment between the performance targets set by the Italian B20 last year and our performance targets this year, so there will be a continuity," Wicaksono stated.

To ensure a fair, orderly, and affordable transition to sustainable energy use, Wicaksono stated that the pricing in developing countries should be taken into consideration. Thus, it is necessary to formulate ways to integrate the benefits of carbon pricing into the energy transition pricing.

"With the energy transition, we must also think about the security and availability aspects of world energy. At the same time, we must also ensure that everyone has access to clean and modern energy," he emphasized.

The managing director of Jababeka Infrastructure stated that the potential of decarbonization towards net-zero emission also comes from industrial areas. Furthermore, he invited companies in the B20 to conduct global collaborations that will result in business actions, as the provision of renewable energy for industrial companies with a large demand can contribute to achieving the energy transition target, he affirmed.

Wicaksono also accentuated the importance of energy transition and the important role of the B20 Energy, Sustainability, and Climate Task Force in achieving energy transition priorities, especially to achieve net-zero emissions.

On the same occasion, Chairman of the Indonesian Chamber of Commerce and Industry Arsjad Rasjid stated that currently, the main players in the energy and utility areas are facing challenges.

Collaboration becomes increasing important for achieving significant reductions in carbon emissions and a progressive transition from carbon-generating energy to environmentally friendly, greener, and sustainable energy, Rasjid stated.

"The transition to greener energy does not mean stopping profits for the company. The company's move towards clean energy will create added value for brands and consumers to become more confident and have a positive outlook," he remarked.

Head of Indonesia's B20 Organizer, Shinta Kamdani, stated that energy transition should provide benefits and not create burden. Kamdani pressed for making meticulous preparations for the energy transition, including conducting mitigation of the costs and impacts.

"This energy transition certainly requires substantial financial support. The G20 countries, which contribute 80 percent of the world's economy, are expected to provide this support for the transition process. Several main priorities must be put forward in this energy transition, such as accessibility, technology, and funding," Kamdani stated.

The event was moderated by Gianfranco Casati and Valentin de Miguel from Accenture that are the Co-Chair and Deputy Co-Chair of the B20 Energy, Sustainability, and Climate Task Force.

The forum also presented other keynote speakers: the Chair B20 Future of Work & Education Task Force/President Director of Astra Otoparts/Director of PT Astra International Tbk, Hamdhani D. Salim; Co-Chair B20 Future of Work & Education Task Force/IOE Vice President to The ILO, Renate Hornung Draus; WEF Head of Energy, Materials and Infrastructure, Kristen Panerali; and ENI Evolution CEO, Giuseppe Ricci.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Sri Haryati (c) ANTARA 2022

Copyright 2022 ACN Newswire. All rights reserved. http://www.acnnewswire.com

JAKARTA, Jun 22, 2022 – (ACN Newswire) – State-owned oil and gas firm PT Pertamina (Persero) succeeded in achieving cost optimization of US$2.21 billion in 2021 amid high global crude oil prices.

"Through this business strategy, in 2021, Pertamina succeeded in cost optimization of US$2.21 billion, obtained from the cost savings program (cost-saving) of US$1.36 billion, cost avoidance of US$356 million, and additional revenue (revenue growth) of around US$495 million," director of finance of Pertamina, Emma Sri Martini, said in Jakarta on Tuesday.

Martini explained that Pertamina has developed several policies and business strategies from the financial and operational perspective to face the increasing global oil price challenges.

Pertamina is strengthening its financial strategy and operational efforts to improve efficiency across business lines, both holdings and sub-holdings and from upstream processing to downstream, amid increasing crude oil prices.

From a financial perspective, Pertamina has implemented a cost optimization program across the Pertamina Group, including cost savings, cost avoidance, and increased revenue.

Under the savings efforts, Pertamina is also running a hedging program for market risk management. In addition, the company has centralized procurement, prioritized capital expenditures, and is managing assets and liabilities to reduce costs or interest expenses (cost of funds).

"We are trying to optimize all costs and manage the company's financial aspects, to reduce costs, including prioritizing projects that have fast results," she said.

Besides financial tightening, Pertamina is also implementing an operational strategy to increase revenue for its six sub-holdings.

In the upstream business, Pertamina has continued to increase oil and gas production and lifting to take advantage of the increasing oil prices. As a result, production has increased by 4 percent and lifting by 3 percent.

The positive performance from upstream operations has been contributed by Rokan Block and foreign assets and consistent efforts to maintain production levels through well-drilling and resource discovery.

In 2021, Pertamina drilled 12 exploration wells and 350 exploitation wells. In the same year, its discovered reserves (2C) reached 486.70 MMBOE (million barrels of oil equivalent) and additional proven reserves (P1) reached 623.47 MMBOE.

In processing and petrochemicals, in 2021, Pertamina implemented a crude and product optimization strategy. This contributed to an increase in product yield value by around 3 percent.

The strategy is related to the selection and economic substitution of crude oil and maximizing high valuable products with high spreads. In 2021, refinery production also increased in response to higher energy demand due to national economic recovery.

Then, in the transportation and logistics sectors, Pertamina optimized the load factor to achieve revenue and cost-efficiency. In the gas business, Pertamina also increased the gas trade volume and transportation, as well as oil transportation volume.

"And after the legal end state, we will also intensify resource sharing, such as sharing facilities and development agreements, especially in upstream sub-holding," Martini said.

She added that the positive performance downstream was also supported by the government through the recognition of the difference in compensation for HJE JBT Solar and JBKP Pertalite in 2021, which reached around US$4 billion or equivalent to Rp58.6 trillion (excluding tax) and around US$1.7 billion or equivalent to Rp24.1 trillion (excluding tax) in 2018 and 2019.

According to Martini, the government's support will continue in 2022 through a policy revision that will stipulate Pertalite (RON90) as a Special Assignment Fuel in place of Premium (RON88) and an adjustment to the price of Pertamax.

As Pertamina's appreciation for this support, several initiatives in the downstream sector have been implemented that simultaneously respond to market changes, such as an expansion of digital transactions, acceleration of Pertashop outlets to capture larger market opportunities in rural areas, and diversion of gas station energy sources to solar panels.

We appreciate the government and the DPR's decision, which has increased the budget ceiling for subsidies and compensation for 2022 to maintain and protect people's purchasing power and contain potential inflation. This is a support for Pertamina in providing energy amidst the challenges of high crude oil prices," Martini said.

With this support, in 2022, Pertamina will make efforts to increase oil and gas production by 17 percent, targeting 79.9 percent Valuable Product Yield, adding around 3 thousand Pertashop fuel outlets, developing digital markets for up to 25 million MyPertamina users, and increasing revenue from non-captive markets in the shipping business to 7.5 percent.

To strengthen its commitment to low-carbon energy, it will produce 7,138 GWh of electricity, which will be supported by a targeted increase in the installed capacity of up to 2.9 GW. Another important strategy will be unlocking the value developed by subsidiaries.

"In the financial sector, we will focus on optimizing costs targeted to reach up to US$600 million. We will continue to communicate with the government to ensure a good decision for the company," Martini said.Jakarta (ANTARA) – State-owned oil and gas firm PT Pertamina (Persero) succeeded in achieving cost optimization of US$2.21 billion in 2021 amid high global crude oil prices.

"Through this business strategy, in 2021, Pertamina succeeded in cost optimization of US$2.21 billion, obtained from the cost savings program (cost-saving) of US$1.36 billion, cost avoidance of US$356 million, and additional revenue (revenue growth) of around US$495 million," director of finance of Pertamina, Emma Sri Martini, said in Jakarta on Tuesday.

Martini explained that Pertamina has developed several policies and business strategies from the financial and operational perspective to face the increasing global oil price challenges.

Pertamina is strengthening its financial strategy and operational efforts to improve efficiency across business lines, both holdings and sub-holdings and from upstream processing to downstream, amid increasing crude oil prices.

From a financial perspective, Pertamina has implemented a cost optimization program across the Pertamina Group, including cost savings, cost avoidance, and increased revenue.

Under the savings efforts, Pertamina is also running a hedging program for market risk management. In addition, the company has centralized procurement, prioritized capital expenditures, and is managing assets and liabilities to reduce costs or interest expenses (cost of funds).

"We are trying to optimize all costs and manage the company's financial aspects, to reduce costs, including prioritizing projects that have fast results," she said.

Besides financial tightening, Pertamina is also implementing an operational strategy to increase revenue for its six sub-holdings.

In the upstream business, Pertamina has continued to increase oil and gas production and lifting to take advantage of the increasing oil prices. As a result, production has increased by 4 percent and lifting by 3 percent.

The positive performance from upstream operations has been contributed by Rokan Block and foreign assets and consistent efforts to maintain production levels through well-drilling and resource discovery.

In 2021, Pertamina drilled 12 exploration wells and 350 exploitation wells. In the same year, its discovered reserves (2C) reached 486.70 MMBOE (million barrels of oil equivalent) and additional proven reserves (P1) reached 623.47 MMBOE.

In processing and petrochemicals, in 2021, Pertamina implemented a crude and product optimization strategy. This contributed to an increase in product yield value by around 3 percent.

The strategy is related to the selection and economic substitution of crude oil and maximizing high valuable products with high spreads. In 2021, refinery production also increased in response to higher energy demand due to national economic recovery.

Then, in the transportation and logistics sectors, Pertamina optimized the load factor to achieve revenue and cost-efficiency. In the gas business, Pertamina also increased the gas trade volume and transportation, as well as oil transportation volume.

"And after the legal end state, we will also intensify resource sharing, such as sharing facilities and development agreements, especially in upstream sub-holding," Martini said.

She added that the positive performance downstream was also supported by the government through the recognition of the difference in compensation for HJE JBT Solar and JBKP Pertalite in 2021, which reached around US$4 billion or equivalent to Rp58.6 trillion (excluding tax) and around US$1.7 billion or equivalent to Rp24.1 trillion (excluding tax) in 2018 and 2019.

According to Martini, the government's support will continue in 2022 through a policy revision that will stipulate Pertalite (RON90) as a Special Assignment Fuel in place of Premium (RON88) and an adjustment to the price of Pertamax.

As Pertamina's appreciation for this support, several initiatives in the downstream sector have been implemented that simultaneously respond to market changes, such as an expansion of digital transactions, acceleration of Pertashop outlets to capture larger market opportunities in rural areas, and diversion of gas station energy sources to solar panels.

We appreciate the government and the DPR's decision, which has increased the budget ceiling for subsidies and compensation for 2022 to maintain and protect people's purchasing power and contain potential inflation. This is a support for Pertamina in providing energy amidst the challenges of high crude oil prices," Martini said.

With this support, in 2022, Pertamina will make efforts to increase oil and gas production by 17 percent, targeting 79.9 percent Valuable Product Yield, adding around 3 thousand Pertashop fuel outlets, developing digital markets for up to 25 million MyPertamina users, and increasing revenue from non-captive markets in the shipping business to 7.5 percent.

To strengthen its commitment to low-carbon energy, it will produce 7,138 GWh of electricity, which will be supported by a targeted increase in the installed capacity of up to 2.9 GW. Another important strategy will be unlocking the value developed by subsidiaries.

"In the financial sector, we will focus on optimizing costs targeted to reach up to US$600 million. We will continue to communicate with the government to ensure a good decision for the company," Martini said.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Suharto (c) ANTARA 2022

Copyright 2022 ACN Newswire. All rights reserved. http://www.acnnewswire.com

JAKARTA, Jun 22, 2022 – (ACN Newswire) – State-owned oil and gas firm PT Pertamina (Persero) posted a record net profit of Rp29.3 trillion in 2021 following a successful business transformation.

The 2021 transformation helped push up its consolidated net profit (audited) to US$2.046 billion or around Rp29.3 trillion, president director of Pertamina, Nicke Widyawati, said in a statement issued in Jakarta on Tuesday.

The figure was almost double compared to the 2020 net profit of Rp15.3 trillion and exceeded the 2021 Corporate Work Plan and Budget (RKAP) target by 154 percent.

In 2021, Pertamina transformed its business by increasing efficiency and production, carrying out energy transition, developing oil and gas infrastructure, and implementing the Refinery Development Master Plan (RDMP) project.

Widyawati said Pertamina's successful transformation in 2021 was owing to the formation of the oil and gas holding with six sub-holdings: upstream sub-holding, refining and petrochemical sub-holding, commercial and trading sub-holding, gas sub-holding, integrated marine logistics sub-holding, and new and renewable energy sub-holding.

"This transformation is a strategic step to adapt to future business changes, moving more agile and faster, focusing on broader and aggressive business development," Widyawati said.

Pertamina's positive financial performance was also demonstrated by earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$9.2 billion.

This shows that Pertamina's finances are in a healthy (AA) and safe condition amid the disruption and geopolitical challenges affecting the global oil, gas, and energy industry, Widyawati said.

Pertamina's net profit was the consolidated profit of all subsidiaries from upstream, processing, to downstream.

Most of the profit was contributed by the upstream sector's revenue, which surged due to rising Indonesian crude prices (ICP). The downstream sector remained under pressure from the high cost of fuel production, the largest component of which is crude oil, Widyawati said.

In 2021, upstream oil and gas production increased from 863 thousand oil barrels equivalent per day (MBOEPD) in 2020 to 897 MBOEPD. Thus, Pertamina contributed more than 60 percent to national oil and gas production.

In addition, with Pertamina's massive drilling, production at Rokan Block also increased. Various efficiency programs also resulted in cost savings of US$1.4 billion.

Fuel production was also achieved according to the target, so there were no additional imports. Since April 2019, Pertamina is no longer importing solar and Avtur fuel, Widyawati said.

Pertamina has also completed the construction of two giant oil and gas tankers, namely VLCC Pertamina Pride and Pertamina Prime, which will be used for the global market.

Meanwhile, to improve fuel supply reliability in Eastern Indonesia, Pertamina has built and operated 13 new fuel terminals.

Pertamina is also running National Strategic Projects (PSN), including the Balikpapan RDMP Refinery (47 percent completion), Balongan RDMP refinery (68.5 percent completion), Cilacap Green Refinery, Tuban GRR Refinery, as well as other priority projects to strengthen Pertamina's petrochemicals business such as Polypropylene Balongan, Revamping Aromatic TPPI, and Olefin TPPI, she said.

Integrated digitization from upstream to downstream has been one of the keys to Pertamina's successful controlling of the production and distribution of fuel, as well as the improvement in the service quality to the community.

Through its Integrated Command Center, all operational activities can be monitored online and in real-time. The use of MyPERTAMINA application for cashless payments is increasing, and currently, it has reached more than 22 million users, Widyawati informed.

With the 2021 new energy development, in addition to the Biosolar B30 production, the Cilacap Refinery has succeeded in producing renewable diesel (100 percent biodiesel), with a capacity of 3 thousand barrels per day.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Suharto (c) ANTARA 2022

Copyright 2022 ACN Newswire. All rights reserved. http://www.acnnewswire.com