State energy company PT Pertamina recorded positive performance in 2023, booking a total profit of US$ 4.77 billion (Rp 72.7 trillion), an increase by 17 percent from 2022, and its earnings before interest, tax, depreciation and amortization (EBITDA) at US$14.36 billion, a six-percent increase from the 2022 figure.
President Director of PT Pertamina, Nicke Widyawati, said that Pertamina’s consolidated financial performance trend has been positive and continues to improve from year to year since its organizational restructuring. On the other hand, operational performance in all lines of both holding and subholding is also increasingly solid and reliable.
“Pertamina has managed its operations to maintain profit growth. Financial performance in 2023 increased compared to 2022 due to efficiency management, cost optimization, liabilities, and compensation payments,” Nicke said on Wednesday, June 12, 2024.
She cited that the restructuring of the subholding has been successful in promoting the role of active collaboration through the orchestration of a number of strategic initiatives in the financial sector. In addition to cost optimization, efforts to save interest costs, foreign exchange, interest rate, and commodity hedging transaction strategies, as well as efforts to mitigate foreign exchange and credit risks have succeeded in avoiding potential losses and creating contributions of around US$1.1 billion.
Pertamina’s positive financial performance, she added, is also inseparable from the government’s support, which is reflected in price compensation payments for 2023 at Rp119.31 trillion (excluding taxes).
Not only from the financial aspect, Pertamina’s operational performance supported by 6 (six) Subholding and its subsidiaries also grew.
Nicke also emphasized Pertamina’s commitment in pursuing the target of reducing greenhouse gas emissions by 32 percent by 2030. Pertamina’s ESG (environmental, social, governance) growth can be seen in the company’s score at 20.7 (Medium Risk) as of December 1, 2023, if compared to 22.1 (Medium Risk) previously. The lower Sustainalytics score reflects a better level of risk.
“Pertamina’s ESG risk rating rose to number one in the world in the Integrated Oil and Gas sub-industry out of 61 companies in the world,” she said.
