JAKARTA, June 22, 2022 – (ACN Newswire) – State-owned oil and gas firm PT Pertamina (Persero) succeeded in achieving cost optimization of US$2.21 billion in 2021 amid high global crude oil prices.
|Pertamina. gas station ANTARA/HO – PT. Pertamina Patra Niaga Regional Kalimantan.|
“Through this business strategy, in 2021, Pertamina succeeded in cost optimization of US$2.21 billion, obtained from the cost savings program (cost-saving) of US$1.36 billion, cost avoidance of US$356 million, and additional revenue (revenue growth) of around US$495 million,” director of finance of Pertamina, Emma Sri Martini, said in Jakarta on Tuesday.
Martini explained that Pertamina has developed several policies and business strategies from the financial and operational perspective to face the increasing global oil price challenges.
Pertamina is strengthening its financial strategy and operational efforts to improve efficiency across business lines, both holdings and sub-holdings and from upstream processing to downstream, amid increasing crude oil prices.
From a financial perspective, Pertamina has implemented a cost optimization program across the Pertamina Group, including cost savings, cost avoidance, and increased revenue.
Under the savings efforts, Pertamina is also running a hedging program for market risk management. In addition, the company has centralized procurement, prioritized capital expenditures, and is managing assets and liabilities to reduce costs or interest expenses (cost of funds).
“We are trying to optimize all costs and manage the company’s financial aspects, to reduce costs, including prioritizing projects that have fast results,” she said.
Besides financial tightening, Pertamina is also implementing an operational strategy to increase revenue for its six sub-holdings.
In the upstream business, Pertamina has continued to increase oil and gas production and lifting to take advantage of the increasing oil prices. As a result, production has increased by 4 percent and…