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Jakarta Post

Pertamina's first half net profits double to $660M

  • Norman Harsono

    The Jakarta Post

Jakarta   /   Wed, August 28, 2019   /   02:18 pm
Pertamina's first half net profits double to $660M An attendant walks across a gas station belonging to state-owned energy holding company Pertamina in Kuningan, South Jakarta, on Monday. (The Jakarta Post/Seto Wardhana)

Dwindling global oil prices have benefited state oil and gas company Pertamina’s accounts this year, when first half net profits hit US$660 million, more than double the $311 million booked in the same period last year

Pertamina finance director Pahala Mansury told reporters on Monday evening that lower Indonesian crude oil prices (ICP) suppressed upstream costs, allowing the company to book higher profits even though first half revenues dropped by 3.4 percent to $25.55 billion.

According to Energy and Mineral Resources Ministry data, ICP dropped from $66 per barrel in last year’s first half to 63 per barrel in this year’s first half, following a drop in global oil prices against the backdrop of weak global economic activities.

“Lower ICP slightly decreased our revenues, but this decrease was less than the decrease in production costs. In summary, production costs decreased 6 percent while revenues only decreased 3 percent,” said Pahala at a press conference in Jakarta.

However, Pertamina’s ready-to-use oil production in the first half decreased by 7.6 percent year-on-year (y-o-y) to 369,000 barrels of oil per day (bopd), even though crude oil production increased 7.3 percent y-o-y to 413,000 bopd.

The company also noted fuel sales increased by 1.8 percent to 42.46 million kiloliters in this year’s first half compared to in the same period last year.