PT Pertamina Geothermal Energy Tbk (PGE) said that its capital expenditure (capex) this year amounted to US$547 million or the equivalent of IDR 8.5 trillion (exchange rate IDR 15,583). Of the total capex, around 10% -15% is budgeted for maintenance or maintenance of company assets and the rest is growth capex or capital expenditure to develop the company.
“Regarding capex, this year we have spent around US$547 million,” said Pertamina Geothermal Energy Finance Director Yurizki Rio in a PGEO media briefing in Jakarta, Thursday (14/3). This geothermal issuer with the stock code PGEO has the ambition to control 30% of geothermal capacity by 2026 through an expansion program.
Yurizki explained that to carry out the expansion program, capex of up to US$3 billion or around Rp. 46 trillion is needed during the 2024-2029 period. The capital expenditure is used for inorganic project development plans and merger and acquisition (M&A) plans.
One of them, PGEO plans to acquire the Sorik Marapi geothermal power plant (PLTP) unit in North Sumatra owned by KS Orka this year. Funding for the acquisition came from a banking syndicate.
“So, the US$3 billion includes inorganic plans as well as potential mergers and acquisitions. If the acquisition can be carried out this year, the funds will be supported by a banking credit syndication,” explained Yurizki.
On the same occasion, PGE President Director Julfi Hadi said that throughout 2023, PGE had recorded a net profit of US$163.59 million or equivalent to IDR 2.5 trillion. This is an increase of 29% on an annual basis or year on year (yoy) compared to the achievement in 2022 of US$127.32 million. “This is the highest achievement in our history,” he added.
Business expansion is PGE’s main priority for the next two years. PGE has the ambition to increase the installed PLTP capacity which is managed directly to 1 gigawatt (GW) in 2026 from 672 megawatts (MW) installed capacity.
PGE will add 340 MW PLTP until 2026. The addition comes from the Hulu Lais projects (Units 1 and 2) with 110 MW, Lumut Balai (Unit 2) with 55 MW, Ulebelu Co-Generation with 30 MW, Lahendong Co-Generation 10 MW, and others. “We have several projects and we want to speed up commercial on date (COD) or plant operation starting from small power first, from 10 MW, to 30 MW,” he concluded. (Z-2)
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