Pertamina Opens Voice About Postponement Of PHE IPO, Here Are A Series Of Reasons

DOC/ANTARA HO Pertamina

JAKARTA - PT Pertamina (Persero) has opened its voice regarding the postponement of the initial public offering (IPO) subholding upstream of PT Pertamina Hulu Energi (PHE).

Pertamina's VP of Corporate Communication Fadjar Djoko Santoso explained that the PHE IPO was not implemented at this time because it still needed to find the right time.

"This is of course in line with the provisions conveyed by the Ministry of SOEs through the Deputy Minister of SOEs some time ago," he said in a press release, Saturday, July 29.

Fadjar said, there were several things to consider, including in line with the dynamics of the world capital market conditions and Southeast Asia throughout 2023 due to pressure from the influence of the global recession.

In terms of global macroeconomics, the trend of increasing the Fed's interest rate adds to the economic burden of emerging markets to maintain the pace of economic growth.

On the other hand, world oil prices (Brent) have decreased compared to last year, which in recent months has been at the level of $70-80 per barrel and is predicted to remain at that level until 2024.

"This is also a factor that does not support the implementation of the PHE IPO at this time," he said.

Fadjar does not deny that PHE continues to carry out unlock value activities through increased oil and gas production, global expansion, acquisition, CCS/CCUS new business development studies to maximize asset value and increase production.

"This strategy is carried out to support the achievement of the national oil production target of 1 million barrels per day (bph) and 12 billion gas standard cubic feet per day (Bscfd) by 2030, in order to maintain national energy security," said Fadjar.

He explained that the unlock value strategy was supported by strong PHE fundamental conditions. Basically, PHE is currently in excellent condition as evidenced by its performance in 2022 which managed to record a positive performance over the contribution of oil and gas production growth of seven percent compared to the previous year, as well as a net profit of 4.67 billion US dollars.

PHE has also received a score of 85.05 or a very good category in the GCG assessment for the 2022 financial year. In addition, PHE managed to get an ESG rating rating of 31.2 or ranked 13th out of 143 oil and gas companies in the world.

"The positive impact of PHE's performance on state revenue in 2022 is USD 8.77 billion, consisting of tax and non-tax revenues," added Fadjar.