Pertamina May Lose 51 Percent of Profit, Says President Director
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21 April 2020 14:00 WIB
TEMPO.CO, Jakarta - PT Pertamina (Persero) estimates a potential profit loss of up to 51 percent or around US$1.12 billion from the 2020 Work and Budget Plan (RKAP). Based on the RKAP, Pertamina targets a profit of US$2.2 billion and a revenue of US$58.33 billion, this year.
Pertamina President Director Nicke Widyawati explained that in addition to the drop in revenue, Pertamina's profit would decrease even further when factoring in the foreign exchange loss. "Capex and Opex use the US dollar, while revenues use the Rupiah," she said, on Tuesday, April 21, 2020.
Pertamina's potential loss of profit has been calculated by Pertamina in two scenarios, severe and very severe, in consideration of the Indonesian Crude Price (ICP) and the US dollar exchange rate.
Referring to the first scenario, the company's revenue has the potential to drop as much as US$22.17 billion to US$36.16 billion. On the other hand, in the second scenario, the potential for decline is even greater, as the revenue is expected to plummet by US$26.25 billion to US$32.08 billion.
"For the very severe scenario, there will be a profit loss of 51 percent, that (calculation) is with assumptions set by the government. Cashflow is an even bigger problem, as we provide many credit facilities to customers because everyone is now having cash flow difficulties," she added.
BISNIS | DIO SUHENDA (INTERN TRANSLATOR)