Pertamina’s 2021 net profit soars by 95%

Pertamina saw its net profit soar 95 percent last year amid surging oil prices, the state-owned energy holding company said on Friday. The oil and gas giant said in a statement that it booked a net profit of US$2.05 billion in 2021, almost double the $1.05 billion it recorded in 2020. It also recorded a 39 percent increase in last year’s revenue to $57.51 billion.
“The figures represented the combined profits of six sub-holding companies and their subsidiaries. Its upstream businesses contributed the most due to a windfall from a sharp rise in the Indonesian Crude Price (ICP), the national benchmark used for calculating the state budget. The growth to Pertamina’s integrated upstream to the downstream business model, which across-cross-subsidization between upstream and downstream businesses”, Heppy Wulansari said in the statement.
The prices of gas, oil, coal, electricity, and carbon all soared last year, in large part as a result of rising geopolitical tensions between producers and consumers. Crude oil prices also rallied in 2021, gaining more than 50 percent as demand recovered from easing pandemic restrictions across the world. Meanwhile, the downstream energy sector, especially the marketing and distribution of fuel oil and liquefied petroleum gas (LPG), was still operating at a loss because of higher crude prices, which put significant pressure on production costs.
“Nevertheless, Pertamina appreciates the government’s full support through the assigned fuel compensation and increased energy subsidies in the state budget. These were very significant to maintaining purchasing power and boosting economic recovery,” Heppy said.
Pertamina’s oil and gas production last year reached 897 thousand barrels of oil equivalent per day (boepd), up 3.9 percent from a year earlier, with 445,000 bopd in oil output and 2,614 million standard cubic feet per day (mmscfd) in gas output. The company said it did not import additional crude beyond the initial estimate, as its production output had achieved the year’s target. Indonesia’s overall oil and gas imports grew 9.21 percent YoY to $3.81 billion in April 2022, Statistics Indonesia (BPS) reported on May 17.

June 13, 2022, The Jakarta Post