Positive Performance, Pertamina Achieved IDR 56 Trillion Net Profit in 2022
April 18, 2023 - PT Pertamina has successfully recorded positive performance for 2022 by achieving a net profit of USD 3.8 billion or IDR 56.6 trillion. This achievement represents an 86% increase compared to the company's profit in 2021. Despite oil prices’ volatility and the dynamic exchange rate of the Rupiah, Pertamina has demonstrated its ability to improve its performance in 2022 through various efforts, both operationally and financially.
Throughout 2022, the Pertamina Group has contributed to the state's revenue of IDR 307.2 trillion, consisting of taxes, dividends, non-tax state revenue (PNBP), Crude Oil and/or Condensate for the State, and signature bonuses. The contribution to the state has increased by 83% compared to 2021. Specifically, in terms of tax payments, Pertamina paid IDR 219.06 trillion in 2022, an increase of 88% compared to 2021.
"This achievement is owed to all Pertamina’s officers' collective efforts. This positive performance is also inseparable from the support of the government, particularly the Ministry of Finance, the Ministry of State-Owned Enterprises, and the Ministry of Energy and Mineral Resources," said Nicke Widyawati, President Director of PT Pertamina (Persero), in Jakarta on Monday, April 17, 2023.
With a commitment to continuous growth, Pertamina has successfully improved its operational performance in 2022 across all Sub-holdings. Oil and gas production reached 967 thousand barrels of oil equivalent per day (MBOEPD), an 8% growth compared to 2021, refinery production reached 313.9 million BBL or a 6% growth, fuel and non-fuel product sales realization reached 97.86 million kiloliters or a 5% growth, Pertamina's vessel cargo transportation efficiency reached 89% or a 3% growth, geothermal and other new renewable energy electricity production reached 4,659 GWh, and household gas network installations reached 254,063 connections, a 4,760% growth.
Pertamina highly appreciates the government's support through the Ministry of Finance for amending Minister of Finance Regulation (PMK) No. 159/2022 regarding the procedures for the provision, disbursement, and accountability of compensation funds. With the PKM amendment, the government accelerated the fuel compensation funds payment amounting to IDR 319.81 trillion (including taxes), consisting of receivables from 2019 - 2021 amounting to IDR 83.41 trillion (including taxes) and for the period until the third quarter of 2022 amounting to IDR 236.40 trillion (including taxes). These compensation funds payment has improved the company's operating cash flow, ensuring the financial ratios are well-maintained in the 2022 performance.
To mitigate the dynamic exchange rate movement, Pertamina has actively conducted hedging transactions and balanced monetary accounts, successfully mitigating exchange rate risks amounting to USD 657 million. Pertamina has also carried out efforts to reduce interest costs on loans that increased due to the impact of fluctuating Indonesia Crude Price (ICP) through consolidated fund management optimization and early repayments once the compensation funds have been received. These efforts resulted in consolidated interest cost savings of USD 466.75 million.
As an effort to mitigate global crude oil price volatility, Pertamina has implemented savings through commodity hedging, optimal inventory management strategies, and domestic crude oil utilization optimization.
In 2022, Pertamina successfully controlled the Specific Types of Fuels (JBT) Diesel and Special Assignment Fuels (JBKP) Pertalite’s distribution, resulting in distribution realization below the quota set by the government. The JBT Diesel distribution realization was 17.5 million KL compared to a quota of 17.6 million KL. The JBKP Pertalite distribution realization was 29.5 million KL compared to a quota of 29.9 million KL. Pertamina continues its efforts to ensure that subsidized fuels are consumed by eligible recipients through various programs, including petrol stations digitalization, information technology-based dashboards utilization for real-time control of subsidized fuel distribution at petrol stations, encouraging people to register for the Right Subsidy Program through the website, and cooperation with Law Enforcement Agencies (APH) to improve monitoring and enforcement of subsidized motor fuel misuse.
For efficiency, Pertamina has implemented efficiency programs across the Pertamina Group that contributed to USD 838.4 million in savings. These programs include cost savings in transportation and crude oil handling in the Upstream Sub-holding, crude oil procurement costs optimization and product export in the Refining & Petrochemicals Sub-holding, fuels import efficiency in the Commercial & Trading Sub-holding, ship leasing costs optimization in the Integrated Marine Logistics Sub-holding, centralization and savings in goods and services procurement in the Holding Pertamina and PNRE sub-holdings, as well as liability management in the Gas sub-holding.
Pertamina continues to encourage the public to consume motor fuels wisely and start using environmentally friendly fuels to support reducing carbon emissions and preserving the environment. Pertamina also realizes that the challenges in 2023 will not be easier than 2022. "Therefore, Pertamina will continue to maintain and improve its performance and seek support from all stakeholders. Pertamina will continue to be committed to fulfilling energy needs and maintaining national energy resilience, self-sufficiency, and sovereignty," concluded Nicke.**