The Jakarta Post
Publicly listed integrated energy services provider PT Elnusa booked higher revenues and profits despite lower oil prices last year.
The company booked a 26.6 percent year-on-year (yoy) increase in revenue to Rp 8.39 trillion (US$614 million) throughout 2019, thanks to a sharp increase in upstream oil and gas services revenue that jumped by 45 percent yoy to Rp 3.8 trillion.
The increase in revenue also created a positive impact on the company’s bottom line, as it booked Rp 356.47 billion in profits, up by 29 percent yoy last year.
Elnusa finance director Hery Setiawan attributed last year’s positive performance to its parent company, state-owned energy holding company Pertamina’s takeover of terminated oil and gas blocks.
He also said the company was able to take advantage of opportunities to maintain its performance even during the slump in oil and gas prices that slowed down exploration activities early last year.
“We tried to grab every positive opportunity as best as we could by diversifying our portfolio and providing integrated energy services, from upstream to downstream, to make sure we could continue to grow,” he said in a statement on Tuesday.
Fortunately, he said, both Brent and West Texas Intermediate (WTI) oil prices went up toward the end of last year that boosted exploration activities among energy companies.
Despite the financial success, the company only recorded a slight increase in its net profit margin of 4.3 percent last year from 2018’s figure of 4.2 percent.
However, Hery remained optimistic that the company could continue to grow its business this year, as it allocated Rp 1.4 trillion in capital expenditure (capex) this year, higher than last year’s allocation of Rp 1 trillion.
“We will use the capex for investment that could support growth, including manufacturing hydraulic workover units for oil well workovers to support Pertamina’s upstream business,” he said.
He also said that the company was optimistic that it would reach its target of an 8 percent increase in revenue to Rp 9.1 trillion with a net profit of around Rp 400 billion, due to good business prospects for 2020.