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Pertamina achieves Rp 72 trillion profit in 2023
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(Photo: Courtesy of Pertamina)
Pertamina booked a rise in profit of 17 percent year-on-year (yoy), reaching US$4.77 billion in 2023.
Pertamina's strong financial performance is also reflected in its earnings before interest, tax, depreciation and amortization (EBITDA), which increased by 6 percent yoy to $14.36 billion. Moreover, the company’s consolidated revenue for 2023 stood at $75.79 billion.
Pertamina president director Nicke Widyawati noted that the company's positive trend in consolidated financial performance has continued to rise since its organizational restructuring. The company’s operational performance across every business line, including both holding and subholding entities, has become increasingly solid and reliable.
“Pertamina has successfully managed its operations to sustain its profit growth. [The company’s] financial performance in 2023 improved due to efficient management, cost optimization, liabilities management and compensation payments,” Nicke stated.
Nicke highlighted that the restructuring of Pertamina’s subholdings prioritized active collaboration through strategic financial initiatives. Those initiatives include cost optimization, interest cost savings, hedging strategies for foreign exchange, interest rates and commodities, as well as risk mitigation efforts, which altogether contributed around $1.1 billion.
Government support has also played a crucial role in Pertamina's positive financial performance, particularly through price compensation payments amounting to Rp 119.31 trillion before taxes in 2023.
“We greatly appreciate the government's consistent support through regulatory revisions, product price adjustments and budget increases,” Nicke added.
Not just financially, Pertamina's operational performance, bolstered by its six subholdings and subsidiaries, has also continued to grow.
In the environmental, social and governance (ESG) sector, Nicke emphasized Pertamina's commitment to a 32 percent reduction in greenhouse gas emissions by 2030, contributing to climate change mitigation efforts and supporting Indonesia's net-zero emissions (NZE) target. Pertamina's ESG risk score improved from 22.1 points to 20.7 points at the medium risk level as of Dec. 1, 2023, indicating better risk management.
"Pertamina's ESG risk ranking rose to number one globally in the Integrated Oil and Gas sub-industry out of 61 companies," Nicke revealed.
Pertamina vice president of corporate communication Fadjar Djoko Santoso added that Pertamina overcame various challenges in 2023 through several efforts, demonstrating the company's commitment to maintaining operational and financial performance while ensuring national energy security.
"With the support of all stakeholders, Pertamina achieved a robust performance in 2023. In 2024, we aim to sustain this positive momentum and continue benefiting society," Fadjar concluded.
