Jan 14, 2011

PLN Earnings Predicted to Decline This Year

Net income of PT PLN (Persero) this year predicted would be declined. Assistant Deputy of the Ministry of Infrastructure and Logistics of State-Owned Enterprises (SOEs) Pontas Tambunan said the decline is caused costs to be borne by PLN increases.

Based on the prognosis last year, net profit of PLN decreased from Rp 12.4 trillion to Rp 12 trillion. "I was no gas supply to be met, but who have not met the same commitment. Coal, too, the price has increased. We expect this year remain with conditions like yesterday. Unlike later when those needs are met, could have its earnings will rise," said Pontas .

Previously the company was asking the government to strictly regulate the selling price of coal. During an increase in coal prices, PLN had difficulty reaching an agreement with PKP2B price (Treaty Coal Mining Exploitation Work) which has been supplying power to PLN. In fact, PLN's difficult to find a deal for 2011, either for power generation privately owned or PLN.

Trends in coal prices rising steadily since October 2010. Based on data submitted by the Director of Primary Energy PLN, Nur Pamudji, written in the press yesterday, Thursday (13 / 1), the coal price benchmark (HBA) is published every month the government has touched the figure above U.S. $ 100 per tonne from December. That number increased in January 2011 to U.S. $ 112.41 per ton.

According Pontas, achieving net profit can also be increased if the construction of 10,000 MW power plant is completed. If it is operated, the PLN is also expected to save up to Rp 200 billion for each plant. In addition, profits could also rise if there is increase in electricity tariff, provided along the average oil price during the year does not exceed U.S. $ 80 per barrel. "Also there are additional new customers as much as 2 million subscribers in 2011," continued Pontas.

In addition to net income, in the year 2011 PLN targeting an increase of revenue, from Rp 174 trillion, based on the prognosis 2010 to Rp 190 trillion. Capital expenditure (capital expenditure / capex) PLN in 2011 at Rp 66 trillion. The funds obtained from internal funds, subsidiary loan agreement (SLA), the state budget, and bank loans. "What is certain portion is 30 percent and 70 percent internal external," continued Pontas.

Target dividend is paid from the year 2011 also increased, from Rp 4 trillion a year earlier to Rp 4.5 trillion. This dividend will be remitted to the government in 2012.

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