Zonalinenews-Jakarta. State-owned oil and gas firm PT Pertamina expects to see double digit growth in its net profit next year partly due to expectations of higher oil production following acquisitions of several oil and gas blocks recently.
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The company said on Thursday that its net profits were projected to reach US$3.44 billion next year, almost a 13 percent increase from this year’s estimated net profits of $3.05 billion. The increase in net profit will be supported by solid growth in total revenues, which are expected to increase by 21 percent to $79 billion from the $65 billion target in the 2013 business plan.
Pertamina is optimistic that this year’s financial results will exceed the target thanks to good performance in the first nine months.
According to the data published on its website, Pertamina reported $52.6 billion in revenues in the first nine months of the year, or about 80 percent of its target set for 2013. Meanwhile, net profits reached a total of $2.18 billion in a nine month period ended Sept. 30, 2013, roughly 71 percent of its 2013 full year target.
“Upstream business is expected to contribute more than 50 percent to total operating profit, particularly supported by an increase in production following merger and acquisition activities as well as production from existing fields,” the company said in a written statement regarding its 2014 business plan.
Under next year’s business plan, Pertamina is aiming to reach higher oil production of 284,000 barrels per day (bpd) next year.
Pertamina has been quite aggressive recently with a number of acquisitions both for domestic and overseas fields. In November, the company announced that it had completed the acquisition of a block in Algeria previously owned by a subsidiary of ConocoPhilips in a deal worth $1.75 billion.
Also in late November, Pertamina, through a subsidiary, said that it purchased 10 percent participating interest in the West Qurna I block in Iraq from ExxonMobil Iraq Limited.
Earlier this December, Pertamina announced that it had established a partnership with Thailand’s PTT Exploration and Production Pcl (PTTEP) to purchase stakes in Hess’ 75 percent ownership in Pangkah block and 23 percent in Natuna Sea A block.
Moreover, Pertamina was recently chosen to operate the Siak block in Riau after the Energy and Mineral Resources Minister decided to terminate a contract with PT Chevron Pacific Indonesia, which previously operated the block.
Contradicting with the growing oil field portfolios, Pertamina is expecting lower gas production next year. Under its 2014 business plan, the company’s gas production is expected to slow next year by around 7 percent at 1,567 million standard cubic feet per day (mmscfd).
Pertamina director for gas Hari Karyuliarto said earlier this week that the company also expected lower Liquefied Natural Gas (LNG) cargoes deliveries from its plants due to lower production. He said Pertamina’s plants in Bontang in East Kalimantan and Arun in Aceh would produce a combined 172 LNG cargoes next year, down by around 17 percent from 208 cargoes this year. (*Kontan /The Jakarta Post)