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Pertamina eyes $1.64 billion in efficiency-driven savings by end of 2016
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Upbeat - A worker (right) monitors activities at a refinery belonging to state-owned oil and gas company Pertamina. (Tempo/-)
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tate-owned energy giant Pertamina, determined to increase its products’ added value through the implementation of the Breakthrough Project (BTP), has managed to boost the company’s net profit, which jumped by 221 percent in the first half of 2016.
Pertamina human resources director Dwi Wahyu Daryoto said the company expected the financial impact of the BTP to reach US$1.64 billion by the end of this year.
He further explained that as of June, the financial impact of the BTP had reached $1.21 billion, or 144 percent higher than the initial target of $838 million.
Wahyu said a major contributor to the BTP's results in the first half of 2016 was the efficiency in Pertamina’s upstream business. The efficiency-driven savings, obtained from the optimization of operating costs in Pertamina's subsidiaries, amounted to $492 million, he added.
Wahyu further explained that through Pertamina’s marketing operation excellence, driven by product and services innovation as well as technology utilization to support distribution, the company had managed to save $183 million. Meanwhile, the company’s centralized procurement resulted in $152 million worth in efficiency-driven savings.
"As part of Pertamina's oil flow governance, we have managed to control losses, which decreased to 0.18 percent and resulted in $95 million worth efficiency-driven savings," Wahyu said in Jakarta on Thursday.
He further said Pertamina’s hydrocarbon procurement efficiency-driven savings, both in crude oil and oil products, yielded $91 million worth of efficiency-driven savings. Pertamina also cut operating costs in its headquarters by $86 million, he added. (ebf)
