2021 Transformation, Pertamina Successfully Presents IDR 29.3 T Net Profit and Creates Outstanding Achievements

June 10, 2022 – PT Pertamina (Persero) recorded outstanding achievements throughout 2021. Pertamina has transformed its business, increasing efficiency and production, carrying out the energy transition, as well as developing oil and gas infrastructure and the Refinery Development Master Plan (RDMP) project.

President Director of Pertamina, Nicke Widyawati, said Pertamina's 2021 successful transformation was due to the forming Oil and Gas Holding with six Subholdings. Namely, Upstream Subholding, Refining and Petrochemical Subholding, Commercial and Trading Subholding, Gas Subholding, Integrated Marine Logistics Subholding, and New and Renewable Energy Subholding.

"This transformation is a strategic step to adapt to future business changes, moving more agile and faster, focusing on broader and aggressive business development," Nicke said in the General Meeting of Shareholders (GMS) approval report at the Ministry of SOEs, Jakarta, Wednesday (8/6/2022).

The 2021 successful transformation encourages a USD 2.046 billion or around IDR 29.3 trillion consolidated net profit (Audited). This figure has almost doubled compared to the 2020 net profit of IDR 15.3 trillion. This achievement was recorded as 154% exceeding the 2021 RKAP target.

Pertamina's positive financial performance is also demonstrated by USD 9.2 billion EBITDA. It shows that Pertamina's finances are in a healthy (AA) condition, safe, and surviving amidst disruption and geopolitical challenges affecting the global oil, gas, and energy industries.

Pertamina's net profit is the consolidated profit of all subsidiaries from upstream, processing to downstream. Most of the profit was contributed by the upstream sector's revenue which also surged (windfall) due to the rising price of Indonesia Crude Price (ICP). The downstream sector is still under pressure from the high cost of fuel production, the largest component of which is crude oil.

In 2021, upstream oil and gas production increased from the previous year, from 863 thousand oil barrels equivalent per day (MBOEPD) in 2020 to 897 MBOEPD in 2021. Thus Pertamina contributes more than 60% to national oil and gas production. In addition, with Pertamina's massive drilling, the Rokan Block production has also increased. Various efficiency programs have also resulted in cost savings of USD 1.4 billion.

Fuel production is also achieved according to the target, so there is no additional import. Since April 2019, Pertamina has no longer import Solar and Avtur. Pertamina also completed the construction of two giant oil and gas tankers, namely VLCC Pertamina Pride and Pertamina Prime, used for the global market.

Meanwhile, to improve fuel supply reliability in Eastern Indonesia, Pertamina has built and operated 13 new fuel terminals. Pertamina also runs National Strategic Projects (PSN), including the Balikpapan RDMP Refinery (47 percent progress), Balongan RDMP refinery (68.5 percent progress), Cilacap Green Refinery, Tuban GRR Refinery, as well as other priority projects to strengthen business Pertamina's Petrochemicals such as Polypropylene Balongan, Revamping Aromatic TPPI, and Olefin TPPI.

Integrated digitization from Upstream to Downstream is one of the keys to Pertamina's success in controlling the production and distribution of fuel, as well as improving the service quality to the community. Through the Integrated Commands Center, all operational activities can be monitored online and in real-time. The MyPERTAMINA application for cashless payments is increasing, and currently, it has reached more than 22 million users.

With the 2021 new energy development, in addition to the Bio solar B30 production, the Cilacap Refinery has succeeded in producing Renewable Diesel (100% Biodiesel) with a capacity of 3,000 barrels per day.

For Environmental, Social, & Governance (ESG), Pertamina has improved its position to be ranked 15th among global energy companies. This achievement is the result of various decarbonization programs. It includes exhaust gas used as electrical energy (flaring gas recovery system) source replacing diesel generators, PLTS installation in oil and gas blocks, refineries, fuel terminals and petrol stations, green hydrogen development from geothermal energy, and the Langit Biru Program.

Nicke said that Pertamina was also the driving force for the domestic industry, with a 60% TKDN achievement or twice as high as the 2021 30% target. In addition, throughout 2021, 881 MSMEs assisted by Pertamina were promoted (go modern, go digital, go global).

Nicke continued that Pertamina affirmed its commitment to Net Zero Emission in 2060 through collaboration with global companies. It includes Carbon Capture Utilization & Storage (CCUS), Carbon Trading, Green Energy Clusters, Natural Carbon Solutions, EV battery ecosystem, and the green hydrogen development from renewable energy.

To improve energy accessibility for the community, Pertamina carries out the One Village One Outlet (OVOO) program. Namely, One Price Fuel, Pertashop, and LPG agents, in collaboration with the Coordinating Ministry of Maritime Affairs and Investment (Kemenkomarves), Ministry of SOEs, Ministry of Energy and Mineral Resources, and Ministry of Home Affairs.

"Not only that, but we also support the Government in handling Covid-19 by building and revitalizing seven special Covid-19 hospitals with a capacity of 1,200 beds, as well as other assistance with a total value of IDR 2.1 trillion," Nicke said.

Pertamina Group also distributed 4,964 tons of oxygen assistance to patients exposed to COVID-19 in 539 hospitals in 14 provinces in Java, Bali, NTB, South Kalimantan, Central Kalimantan, West Sumatra, South Sumatra, Babel, and Lampung.

"In 2021, the Langit Biru Program (PLB) was successfully implemented nationally, as well as the construction of gas lines, which has reached 178,000 house connections," she said.

Nicke said these achievements did not make Pertamina satisfied but more motivated to provide even better energy and serve the people and nation of Indonesia. "Pertamina's outstanding achievement in 2021 certainly cannot be separated from the Government support, the community and other stakeholders, and of course the hard work of all Pertamina officers," Nicke concluded.**