Pertamina Geothermal Energy Tbk

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Efficient in 2022, PGEO's Net Profit Increases

PT Pertamina Geothermal Energy Tbk. (PGE), a listed subsidiary of Pertamina engaged in the geothermal sector, recorded positive performance in 2022. The company’s efficiency programs, sales of steam and electricity, and other sources of income have contributed to the company's net profit increase of 49.7 percent compared to 2021.

This increase in profit was recorded in the company's audited financial statements and submitted to the public on March 30, 2023. In the report, PGE recorded a 2022 net profit of USD 127.3 million, a significant increase from the 2021 achievement of USD 85 million.

Throughout 2022, the company reported an increase in operating income of 4.68 percent year-on-year (yoy), which contributed to an increase in revenue of USD 17 million, which factor including the increase in the selling price of steam and electricity referring to the US Producer Price Index (PPI) and Consumer Price Index (CPI). In addition, the significant decrease of company's operational expenses as a result of the efficiency program implemented by the company has contributed to the increase in profit. PGE also recorded carbon credit sales as a new revenue generator for other income.

As part of PGE's efforts to increase installed capacity by 600 MW in 2027, PGE is currently building Lumut Balai Unit 2 geothermal power plant with a capacity of 55 MW, which Commercial Operation Date set at the end of 2024. In addition, PGE has completed the front-end engineering design (FEED) for the Fluid Collection and Reinjection System (FCRS) facility. This stage is part of the geothermal power plant Hulu Lais Units 1 and 2 development project with an installed capacity of 2 x 55 MW, which is expected to begin its commercial operation in 2026.

Going forward, the company will focus on optimizing its existing geothermal assets, such as increasing production capacity through the co-generation technology method by utilizing existing hot water (brine) to generate electricity. Co-generation technology has been implemented at the Lahendong geothermal power plant by utilizing the remaining 500 KW of steam production.

In terms of ESG, in 2022, PGE has succeeded in obtaining an ESG Rating 2 from Sustainable Fitch, indicating that PGE is in the good performance category in terms of ESG management. PGE has several ESG initiative programs in 2022, including utilization of co-generation technology (brine to power) in the Lahendong area, emission reduction and sale of carbon credits, a biodiversity program, occupational safety management, CSR, ERM, cyber security, and the implementation of an anti-bribery management system (SMAP).

About PT Pertamina Geothermal Energy Tbk

PT Pertamina Geothermal Energy Tbk. (PGE) is a subsidiary of Pertamina Power Indonesia engaged in geothermal exploration, exploitation, and production. Currently, PGE manages 13 geothermal working areas (WKP) with an installed capacity of +1.9 GW, of which 672 MW is operated and managed directly by PGE and 1,205 MW is managed under the Joint Operation Contract scenario. The geothermal installed capacity in the PGE working area contributes to around 82% of the total installed geothermal capacity in Indonesia, with a potential reduction of CO2 emissions of around 9.7 million metric tons per year.

As a world-class green energy company, PGE aspires to create value by maximizing end-to-end management of geothermal potential and its derivative products and participating in the national and global decarbonization agenda to support Indonesia's net zero emissions by 2060. PGE has excellent ESG credentials with 13 Gold PROPER awards from 2011 to 2022, the highest environmental compliance award from the Ministry of Environment and Forestry ESG Rating and Engagement.

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