TBS Energi Utama Strengthens Capital For Business Growth In Renewable Energy And Electric Vehicles

Deputy President Director of TBS Energi Utama, Pandu Patria Sjahrir. (Didi Kurniawan/VOI)

JAKARTA - PT TBS Energi Utama Tbk (TBS) today, Wednesday 8 June, held an Annual General Meeting of Shareholders (AGMS) and was followed by an Extraordinary General Meeting of Shareholders (EGMS).

The two general meetings discussed the approval of the use of net profit for the purposes of the company's business development, followed by changes in the company's management, and approval of Pre-emptive Rights (HMETD) which were discussed in this year's EGMS.

Recorded in the last bookkeeping of December 31, 2021, TBS has earned US$462.7 million in revenue, an increase of 39.4 percent compared to last year. In addition, TBS also managed to record a net profit of 65.6 million US dollars, an increase of 83.2 percent from last year.

Most of the profit for the year will be used to strengthen long-term capital and business growth as well as the company's investment plans, especially in renewable energy and electric vehicles.

In a media conference session held after the EGMS, TBS Deputy President Director, Pandu Patria Sjahrir said, the company's very positive performance in 2021 is the foundation for us to realize our commitment to sustainability-based business development.

"We have set a target to achieve carbon neutrality by 2030 and to achieve this target we are committed to using our income to invest in new and renewable energy sectors including electric vehicles, which are environmentally friendly. In 2021 yesterday we have realized a joint venture cooperation for electric vehicles, the Electrum. This means that TBS is very serious in looking ahead, to transforming into green energy," said Pandu.

In order to encourage transformation and strengthen the management, the AGMS also approved the appointment of Juli Oktarina as a new Director. Previously, Juli Oktarina was a director of a TBS subsidiary.

In accordance with the company's main objectives, the new composition of the Board of Directors is expected to further strengthen the organizational structure of FFB in facing dynamic market conditions and to optimize all resources to produce the best performance.

Furthermore, the agenda that was also the subject of discussion at the EGMS was related to the approval of the Company's additional capital through the Limited Public Offering mechanism by granting Pre-emptive Rights (Right Issue).

Previously, the Right Issue was approved in the EGMS agenda in 2021, but taking into account market conditions last year, TBS intends to postpone the implementation of this Right Issue to be carried out in the 2022-2023 period.

TBS intends to use the net proceeds from the Right Issue to strengthen the company's capital structure, namely to finance the company's investments and activities in general (general corporate purposes).

The long-term plan for the FFB energy transition certainly requires a strong and accountable capital structure. The various plans and steps that have been approved in the AGMS and EGMS agendas are expected to accelerate the FFB process to become a pioneer in the green business transition in Indonesia, in line with the commitment of the Government of the Republic of Indonesia to achieve Net Zero Emissions in 2060.