PLN booked unaudited net profit of $19.35 million in 2001
PLN booked unaudited net profit of $19.35 million in 2001
The Jakarta Post, Jakarta
State-owned electricity company PLN said on Monday it booked an unaudited net profit of Rp 180 billion (US$19.35 million) in 2001 compared to losses of Rp 24 trillion in 2000.
But PLN president Eddie Widiono said that this did not reflect the true performance of the company as the profit was mainly due to the payment of accumulated government subsidy funds since 1998, totaling Rp 6.7 trillion.
"That doesn't reflect our true performance. We are still suffering from an operating loss of Rp 3.3 trillion last year," he told a press briefing.
He said PLN would still bear losses this year as the company planned to revaluate part of its assets.
PLN's assets stood at Rp 65 trillion, but will be at least double after revaluation, according to PLN finance director Parno Isworo.
The higher asset value would force PLN to pay extra tax, thus cutting into its profit.
The asset revaluation is part of the company's debt restructuring strategy.
Elsewhere, Eddie said PLN would spend an extra Rp 400 billion this year to buy fuel oil from state-owned oil and gas firm Pertamina to feed its power plant in East Java amid gas supply shortages in the province.
Eddie said PLN had no other choice but to earmark extra expenditures, otherwise the company would fail to deliver power to customers in the province.
"However, our costs will increase by 20 to 30 percent because we must buy the fuel at international prices," he said, adding that the company would spend another Rp 1.2 trillion next year for a similar fuel purchase.
East Java gas consumers such as PLN, cement company PT Semen Gresik and fertilizer firm Petrokimia Gresik are facing gas shortages due to the depletion of the gas supply from British- American firm BP Kangean.
BP Kangean has the exclusive rights to supply gas from Pagerungan island to East Java up to 600 mmscfd (million standard cubic feet per day) through a pipeline until 2010 under a 1980 contract with Pertamina.
The exclusive status does not allow other gas suppliers to enter the market unless demand exceeded 600 mmscfd, and there was an abundance of gas to extract.
The government is currently in the negotiation process to revise the contract.
Pertamina has said it would import some 800,000 kiloliters of diesel oil worth up to Rp 1.4 trillion this year to meet the additional fuel demand in East Java amid the gas shortage.
According to Pertamina, the gas shortage problem would end in 2004 when other oil and gas companies, such as Pertamina, Lapindo and Kodeco are allowed to supply gas to the province.