Pertamina Must Cut Expenses by 20 Percent to Meet Profit Target
August 17, 2017 | 03:40 pm
TEMPO.CO, Jakarta - State-owned oil company Pertamina needs to cut expenses by 20 percent in the second half if they want to meet this year`s net profit target. The company's work plan pegged a net profit target of US$2.3 billion.
Pertamina finance director Arief Budiman said the company's revenue grew 19 percent to US$20.5 billion in the first semester. However, net profit declined by 24 percent to US$1.4 billion (yoy), while the company's EBITA fell 22.9 percent to US$3.16 billion.
Read: Pertamina Eyes Two Oil Fields in Iran
To meet this year's profit target, Arief said the company needs to cut expensed by at least 20 percent, provided there is no significant change in oil prices, on which Pertamina's income also depends.
"Everything depends on prices. If prices are unchanged, we will conduct efficiency measures in the second half," he said.
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