Pertamina quadruples profit in 1998/99

JAKARTA (JP): State oil and gas company Pertamina almost quadrupled its consolidated net profit in the year ending March 31 to Rp 1.05 trillion (US$150.5 million) because of higher revenues from domestic and export sales of crude oil.

"The conditions were tough, yet we managed to reap high profits," Pertamina president Martiono Hadianto said at a ceremony to accept the 1998/99 audited balance sheet.

The financial reports on Pertamina and its six subsidiaries were presented by the Development Finance Comptroller (BPKP).

The state oil company's consolidated net profit totaled Rp 295.2 billion in the previous book year.

Although its crude output remained constant, Pertamina booked higher revenues during the year due to the sharp depreciation of the rupiah against the U.S. dollar.

Pertamina's consolidated assets rose by Rp 5 trillion to Rp 69.4 trillion during the year, according to the report, which received an unqualified (clean) opinion from BPKP.

Pertamina's six subsidiaries are PT Elnusa Tbk (electronics), PT Patra Jasa (hotels and restaurants), PT Pelita Air Services (air transportation), PT Patra Dok Dumai (shipping docks), PT Tugu Pratama (oil and gas insurance) and PT Pertamina Tongkang (small vessel provider).

Pertamina's "own operation" production units made a net profit of Rp 821 billion in 1998/99, against Rp 198 billion a year earlier.

BPKP deputy of oil and gas supervision Syafrin Syamsuddin said the unqualified opinion meant that the report did not contain deviations from standard accounting practices.

Martiono said BPKP found 688 irregularities -- mostly administrative problems -- in Pertamina's consolidation report.

These findings did not cause financial losses, he said.

"We've been able to resolve about 90 percent of these irregularities," Martiono said, adding that the remaining cases were being dealt with.

An audit by PricewaterhouseCoopers (PwC) of Pertamina for the period between April 1996 to March 1998 found inefficient practices and loss of income opportunities amounting to some $4.69 billion.

Martiono played down the contrast between the two reports, saying that BPKP's audit was different to the PwC assessment.

"BPKP evaluated the company's compliance with accounting principles, while PwC audited Pertamina's operation," he said.

Syafrin said PwC reported on inefficiencies and not fund leakages. BPKP would dissect PwC's report to uncover whether actual losses had occurred to the state, he said.

BPKP gave unqualified opinions for four Pertamina subsidiaries, while Elnusa and Patra Jasa received an "unqualified with exception" verdict because their financial reports contained deviations in standard accounting practices.

"The deviations were such that they could mislead readers of their respective financial reports," Syafrin said. (03)