Market speculation about a potential merger between Pertamina Group companies − PT Elnusa (ELSA) and PT Pertamina Drilling Services Indonesia (PDSI) − has grown stronger, with analysts viewing the move as a potential inorganic growth driver for Elnusa.
PT Pertamina Hulu Energi (PHE), the parent company of Elnusa, has reportedly appointed a consultant to study the possibility of combining the businesses of Elnusa and PDSI.
Elnusa’s Director of Development & Business, Arief Riyanto, said that the final decision regarding a merger or acquisition lies with the holding company, PT Pertamina, and PHE as the majority shareholder.
“Elnusa leaves all corporate action decisions to the shareholders. The company is committed to supporting policies that align with its interests and create added value for stakeholders,” Arief said on Friday, August 15, 2025.
Meanwhile, Corporate Secretary of PHE, Hermansyah Y. Nasroen, emphasized that as an upstream subholding, the company remains focused on oil and gas exploration to strengthen Indonesia’s energy security.
“The plan for business synergy is still under review,” Hermansyah told Katadata.co.id.
The potential merger has been positively received by investors. Stockbit Sekuritas noted that combining Elnusa and PDSI could serve as a positive catalyst for Elnusa.
Stockbit Sekuritas Investment Analyst, Hendriko Gani, said PDSI operates in the drilling segment, while Elnusa has complementary upstream oil and gas support services. He argued that merging the two entities could create synergies and efficiencies.
Hendriko projected that the merger could boost Elnusa’s net profit by up to 61.7 percent, assuming PDSI maintains its 2023 profit levels.
“This merger could be a positive catalyst if executed at a maximum valuation of six times price-to-earnings (P/E), slightly above Elnusa’s fair valuation, as PDSI’s higher profitability margin justifies a small premium,” he wrote in a research note published on Monday, 18 August 2025.
He further estimated that Elnusa would need around Rp2.3 trillion (US$141 million) to acquire PDSI. If financed with 30 percent internal cash and 70 percent debt, Elnusa’s cash reserves would decline by Rp689 billion, while liabilities would increase by Rp1.6 trillion. This would shift the company’s financial position from net cash to net debt with a ratio of 0.04 times.
“Nevertheless, we believe Elnusa’s performance will remain intact, and there is still room for expansion and dividend distribution with a payout ratio of 40 percent,” Hendriko said.
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