Pertamina to Sail Further Into the Shipping Business to Increase Profits
State energy company Pertamina is set to boost its shipping business by changing its shipping unit into a fully-fledged subsidiary, a company official said.
Subagjo Hari Moeljanto, vice president of commercial and development at Pertamina Shipping, said that the plan was based on a program to make the unit more profitable and to explore more opportunities.
“Currently, the shipping unit is merely a cost-saving measure,” Subagjo said.
Subagjo claimed that the shipping unit has enabled Pertamina to save up to Rp 800 billion ($83.1 million) in operational costs this year. The company had to bear Rp 9 trillion in operational costs this year.
Pertamina has a positive outlook on the shipping business, Subagjo said, citing an expected increase in demand for gas transportation services, a drop in vessel prices, the country’s refining capacity, an increasing need to import fuel and cabotage as key opportunities in the business.
Subagjo said that Pertamina will center its program on owning more ships, fleet rejuvenation, complying with international standards and network expansion.
Pertamina recently added a new vessel into its fleet when it bought a $53 million 85,000 deadweight ton ship. It is the 49th ship the firm fully owns, out of 185 ships the firm operates.
The shipping subsidiary is expected to generate revenue of Rp 700 billion by 2014 and Rp 1 trillion in 2016, according to Subagjo. He added that Pertamina planned to add 21 more vessels while phasing out four ships by 2016.
“We will also increase the number of ships that comply with international standards, particularly TMSA [Tanker Management and Self Assessment], which will allow Pertamina to access major oil terminals,” he said.
Companies like Pertamina Shipping face difficulties in obtaining lending, a shortage of skilled personnel and inadequate infrastructure, Subagjo said.
In addition, Pertamina also plans to spin-off its lubricant unit, which is the market leader in Indonesia and has an established presence in at least 22 countries.
Pertamina’s assets were valued at $43.5 billion, up 26 percent from last year. While its revenue rose 5.6 percent to $52.6 billion in the first nine months, its net income slipped 9 percent to $1.99 billion
Source: http://www.hellenicshippingnews.com/
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