JAKARTA, June 23, 2022 – (ACN Newswire) – The upstream sector accounted for the largest share of state-owned oil and gas firm PT Pertamina’s (Persero’s) net profit as Indonesian crude prices (ICP) soared in 2021.
|Pertamina Hulu Energi Offshore Southeast Sumatra (PHE OSES) well in Seribu Islands waters off North Jakarta’s coast (ANTARA FOTO/M Risyal Hidayat/rwa)|
“The overall profit earned is a combination of the six sub-holdings and their subsidiaries, but the largest contribution to the net profit comes from the upstream sector due to the windfall from the increase in ICP prices,” acting vice president of corporate communications at Pertamina, Heppy Wulansari, said in Jakarta on Tuesday.
Reporting its 2021 fiscal year performance to the government, which is a shareholder in the company, Pertamina said it scored a net profit of Rp29.3 trillion.
The majority of this profit was obtained from the upstream sector’s revenue, which increased sharply. Meanwhile, the downstream sector experienced losses due to the increase in crude oil prices and as Pertamina’s fuel prices remained below the market price.
This was an advantage for Pertamina, which has an integrated business from upstream to downstream, which allows cross-subsidies. Thus, it could maintain the balance between profits and public service bonds.
Wulansari said that Pertamina’s financial performance was positive, with almost doubled profit in the 2021 fiscal year.
This profit was consolidated profit from all Pertamina business lines from upstream, processing, and downstream.
As for the downstream sector, especially fuel and LPG marketing and distribution, at this time, the status is still at a loss due to the high cost of fuel production as the largest component is crude oil.
“However, Pertamina really appreciates the government’s full support through the payment of assignment fuel compensation and the addition of energy subsidies in the 2022 State Budget. This is very meaningful to maintain people’s purchasing power…