Indonesian oil firm Pertamina 1Q2017 profit slumps due to raw material price surge

Prices of crude oil grew by 59.3% to US$51 per barrel from US$32 per barrel in the same period.

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A surge in prices of raw material has led Indonesia's largest oil and gas firm, Pertamina, experience a drop in their profit by 24.57% to US$760 million in the first quarter of the year from US$1.01 billion in the same corresponding period last year.

Prices of crude oil grew by 59.3% to US$51 per barrel from US$32 per barrel in the same period, The Jakarta Post reported quoting Pertamina president director, Elia Massa Manik, on Wednesday. Its revenue, however, grew by 18.17% from US$8.55 billion.

Pertamina finance and business strategy director, Arief Budiman, said the revenue growth was contributed by non-subsidised product sales despite the spike in crude oil process. "The surge in crude price also caused net income to decline. We cannot pass the increased cost to the public," said Budiman, as reported.

Total capital expenditure during the quarter surged by 208% to US$1.1billion from US$360 million as several projects carried out in 2016 had just been paid for in the first three months of this year.

Meanwhile, aimed at attracting over 5,000 visitors and an array of 1,750 international delegates, the Indonesian Energy and Mineral Resources Ministry and the Indonesian Renewable Energy Society will hold the sixth New and Renewable Energy Conference Exhibition in September.

Jakarta Post reported that the event, scheduled on 13 September until 15 September, will take place at Balai Kartini in South Jakarta. The conference will feature speakers from abroad in the first two days while the latest technologies are displayed on the last day. Speakers and exhibitors from the European Union, Denmark, United Kingdom are expected to join the exhibition.

The invitation was also extended to regional administrations from across Indonesia.

With the theme "Renewable energy is a solution for energy security and Paris agreement", the event dubbed EBTKE ConEx eyes 45 global scale companies displaying their technology and business concepts.

Stakeholders from the gas sector are welcomed to join the convention, as the fossil-fuel source energy is still part of the "alternative" source of energy in midst of the transition period between fossil fuels to new and renewable energy. Exhibition chairman, Paul Butarbutar, said the event will help stakeholders explore the latest information about the industry.

"The event is meant to familiarise themselves with the latest policies, technology, and funding source in a bid to increase the usage of clean energy and clean power source," he said.