CTBN Targets Performance To Grow Along With Positive Outlook For Oil And Gas Prices 2024

Photo: Doc. Antara

JAKARTA - PT Citra Tubindo Tbk (CTBN) targets revenue and net profit to grow in line with the positive outlook for oil and gas (oil and gas) prices by 2024.

President Director of CTBN Fajar Wahyudi said that although industry and the business world in Indonesia, especially oil and gas are being hit by issues of energy transition and a significant reduction in oil prices by the end of 2023, management estimates that business prospects will still be promising.

"This is in line with the projected demand for oil and gas that is heating up. Oil prices in 2024 are expected to be higher than in 2023," said Fajar as stated in an official statement in Jakarta, quoted from Antara, Wednesday, July 3.

In the Short-Ministry Outlook report, U.S. Energy Information Administration (EIA) projects that the average Brent-type oil price will increase from 84 US dollars (US) per barrel in 2023 to 93 US dollars per barrel in 2024, supported by fundamental factors and non-fundamental factors.

In addition, a number of international institutions project global economic growth to increase from 2.3 percent in 2023 to around 2.9 percent in 2024, supported by inflationary conditions and better interest rates.

Fajar said that economic growth generally requires the support of adequate energy supply, especially in its development, the main economic sectors that contribute to the formation of global GDP are sectors that are more energy-intensive.

"This means that the need for energy to produce GDP and encourage economic growth at a certain level will potentially be even greater. Based on data, every 1 percent economic growth will require energy supply growth between 1.5 to 2 percent," said Fajar.

In facing 2024, he explained that the company plans to expand its export market by strengthening its customer portfolio in line with the successful expansion in the Middle East and Africa regions.

In addition, the company also has a number of important projects, both nationally and internationally. CTBN is also developing opportunities for transitional energy in Indonesia and Southeast Asian countries.

"We will continue to strive to maintain the momentum of growth in 2023 and bring it until 2024 and the following years. Synergy continues to be the focus of the Company. We are committed to continuing to improve the quality of service to current customers while expanding services to other customers," said Fajar.

Based on the 2024 Company's Work Plan and Budget (RKAP), the company targets revenues of US$291.44 million and net profit of US$19.69 million this year. In the first quarter of 2024, the company posted revenues from sales and services worth US$46.47 million with a net profit of US$2.87 million.

Citra Tubindo is a premium producer for Oil Country Tubular Goods (OCTG) and supporting services for the oil and gas and mining industry, where OCTG is a tube and pipe used in oil and gas production.