Investors Link PGEO Performance And Burning Pertamina Refinery

Illustration. (Photo: Doc. Antara)

JAKARTA - Continued to weaken the share price of PT Pertamina Geothermal Energy Tbk (PGEO) due to many things, ranging from a minimal investor confidence level, a less qualified company fundamental, to negative sentiment from the governance of the parent company.

Samuel Sekuritas Indonesia analyst Muhammad Alfatih said market sentiment could be very irrational. The number of depots and refineries that have been burned recently belonged to the parent company PGEO, namely Pertamina, could be a negative sentiment.

On Saturday, April 1, 2023, another oil refinery explosion occurred at Putri Seven Pertamina Dumai, Riau. The incident resulted in at least nine injured victims adding to a long list after the Plumpang Fuel Depot fire incident, North Jakarta. When the Plumpang fire, 25 residents were burned to death in the incident.

"The market will link it to management's poor performance, that could happen," he told reporters, Monday, April 3.

Not to mention, he explained, highlighting the company's performance both on the financial and operational side. The 2022 financial performance report did not record any of the jumbo-valued projects because they did not produce. It's not something positive," he said.

In addition, continued Alfatih, many investors also see the management of the company's debt. For example, long-term debt items amounting to US$600 million or around Rp9 trillion have been transformed into short-term debt and will soon mature.

In writing in the financial report signed by PGEO President Director Ahmad Subarkah Yuniarto, PGEO's total short-term debt consists of loans from PT Bank Mandiri (Persero) Tbk amounting to 105 million US dollars, MUFG Bank Ltd, Jakarta Branch amounting to 105 million US dollars and PT Bank UOB Indonesia also 105 million US dollars.

Next, from PT Bank HSBC Indonesia amounting to US$82.5 million, Australia and New Zealand Banking Group Limited Singapore Branch US$75 million, PT Bank BTPN Tbk (BTPN) worth US$5.5 million, Sumitomo Mitsui Banking Corporation Singapore Branch for US$5.5 million and The Hong Kong and Shanghai Bank Corporation Limited for US$22.5 million.

Meanwhile, Director of the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira said the lower share price was not only about debt and the company's performance was minus. The refusal of residents around the geothermal project is also a bad variable.

"The rejection of the community around the geothermal project is still ongoing. In fact, the company must ensure that processes that are claimed to be renewable energy are free from conflicts with the community to meet aspects of good environmental impacts," said Bhima.

As is known, at the close of trading Monday, April 3, 2023, PGEO's shares again touched the lower auto reject (ARB) with a correction of 5.76 percent to the price level of Rp655 per share. That way, the company has undergone more than 25 percent correction since it first took the floor on the stock exchange.