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Pertamina sees net profit down 58.44% in 2020
Pertamina, Indonesia’s largest oil and gas company, reported Monday that it still managed to book a net profit of US$1.05 billion last year, down 58.44 percent from 2019. Its revenue also fell 24.31 percent to $41.46 billion.
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Center stage: The Pertamina headquarters stands out among office buildings near the National Monument in Central Jakarta on Jan. 20, 2020. The state oil and gas company is the country’s largest state-owned enterprise. (JP/Dhoni Setiawan)
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tate-owned oil giant Pertamina booked a 58.44 percent slump in its net profit last year as the COVID-19 pandemic led to declines in the demand for energy and thus oil prices globally.
Pertamina, Indonesia’s largest oil and gas company, reported Monday that it still managed to book last year a net profit of US$1.05 billion, down from $2.53 billion in 2019. The company’s revenue fell 24.31 percent to $41.46 billion.
“We need to appreciate [any earnings], bearing in mind that 2020 was not an easy year, but Pertamina was able to book a net profit of $1.05 billion, or 250 percent higher than the target outlined in the revised 2020 RKAP, namely $419.8 million,” commissioner Condro Kirono was quoted in a press release as saying on Monday, referring to the company’s work and budget plan.
The pandemic has upended the global oil industry, reflected in the benchmark Brent crude oil price that fell to $19.33 a barrel on April 21, 2020, shortly after the World Health Organization (WHO) declared the COVID-19 outbreak a pandemic. The Indonesian rupiah also depreciated against the United States dollar, creating a perfect storm for Pertamina.
Read also: Pertamina logs $768 million net loss in first half of year
Mobility restrictions battered Pertamina’s downstream businesses, which comprise retail sales of fuel, among other things. This business stream brings in large contributions to its revenue. The upstream business, on the other hand, which includes oil and gas production and refining, is the main contributor to its profits.
Last year, Pertamina’s oil and gas production was recorded at 862.7 million barrels of oil equivalent per day (mboepd), down 4.77 percent from a year earlier. The company also reduced its crude oil imports by 12 percent to 76.7 million barrels.
