Pertamina quadruples profit in 1998/99
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)