Pertamina expects rise in profit

JAKARTA: State-owned oil and gas company Pertamina said on Monday it expected gross profit to slightly increase by 1.2 percent to Rp 11.9 trillion (US$1.14 billion) this year from Rp 11.75 trillion last year despite the current drop in oil prices.

Pertamina finance director Ainun Na'im said the target was made based on expectations that oil prices would recover following output cuts by the Organization of Petroleum Exporting Countries and improving global oil demand.

"I'm optimistic we can reach the target," he told a press conference.

Oil prices hovered around $21 per barrel last week, below last year's average oil prices of about $24 per barrel.

Of the Rp 11.75-trillion profit in 2001, Pertamina is to transfer around Rp 9 trillion into the government's coffers.

In 2000, Pertamina's audited gross profit stood at Rp 12.3 trillion.--JP