Ika Krismantari, The Jakarta Post, Jakarta
Elnusa, a subsidiary of state oil and gas firm PT Pertamina, has revised upward its forecast of the proceeds from the sale of a 20 percent stake during its initial public offering in December, an executive said Monday.
President director Eteng A. Salam told reporters Monday that the company was hoping to raise US$100 million in fresh funds through the IPO, far higher than the previous target of $30 million.
Eteng said he was optimistic that the new target was achievable, given the interest of foreign investors in Indonesia's stock market.
The firm's solid financial performance and its strong outlook also played part in its decision to revise the target upward, he added.
Last year, the company booked Rp 1.87 trillion ($210 million) in revenue, compared to Rp 1.27 trillion in 2005. This year, the company expects profit to increase by 30 percent to around Rp 100 billion.
For 2008, it hopes to double net profit to Rp 200 billion.
The company has said it would allocate 30 percent of the IPO proceeds to refinancing its loans.
Hendri S. Suardi, Elnusa administration and finance director, said that the IPO's ultimate goal was to support the company's strategy of focusing its business on the oil and gas industry as an integrated oil and gas upstream services provider.
Currently, the company's business portfolio comprises its oil and gas retailing business (45 percent), upstream oil and gas business (45 percent) and data management business (10 percent).
After the IPO, Elnusa is hopeful that the upstream segment will come to account for 80 percent of the company's business portfolio.
To show its seriousness about the upstream business, it has decided to merge all four subsidiaries -- PT Elnusa Geosains, PT Elnusa Drilling Services, PT EWS Oilfield Services and PT Sinar Riau Drillindo -- with Elnusa acting as the holding company.
Elnusa marketing and operations director Eddy Sjahbuddin said that as oil and gas exploration expenditure was set to reach $12 billion next year, the company was hoping to take advantage of the robust market.
""We are aiming to take 10 percent of the total market in the near future,"" Eddy said, adding that the company currently only had a 2 percent market share.
As one of Pertamina's most profitable subsidiaries, Elnusa has 14 business units operating in the oil and gas sector, both upstream and downstream, and is also involved in the information technology field.
The firm is 51.38 percent owned by Pertamina and 46.44 percent by PT Tri Daya Esta, with the rest of its shares being divided up among 5 other companies.
