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Pertamina Geothermal Energy's Net Debt Drops Significantly in the First Half of 2023

PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) posted a significant decrease in net debt in the first half of 2023, from USD 683 million in December 2022 to USD 66.95 million. The company was able to continue its expansion in line with the completion of short-term loan problems following the issuance of green bonds in the second quarter of this year. The decrease in net debt, which was strengthened by an increase in net profit for the 6 months to June 2023, shows that PGE's business performance is growing and developing.

The ratio of net debt to equity, or debt-to-equity ratio, fell from 74 percent to 39 percent in the first semester of 2023. Meanwhile, short-term loans, which were recorded at USD 400 million in the first quarter of this year and USD 600 million in the first semester last year, are no longer on the books for the period ending June 2023. This will allow PGE to expand as the Company's cash flow improves.

The Finance Director of PT Pertamina Geothermal Energy Tbk, Nelwin Aldriansyah, said the decrease in net debt indicated a solid financial position. "During this period, the Company continued its trend of decreasing debt. This good performance is the answer to doubts that previously said that the Company's performance was disrupted due to maturing debt. Going forward, we are committed to continuing to maintain this good performance."

The decrease in net debt in the first half of 2023 shows that the issuance of green bonds of USD 400 million in April 2023 has been running effectively. The funds obtained from the global market have been effectively used to refinance short-term loans and continue the target of developing geothermal projects going forward.
In the first semester of 2023, the company's EBITDA increased to USD 175.55 million from USD 154.88 in June 2022. Thus, free cash flow increased to USD 150.3 million from USD 143.5 million.

With the efficiency program implemented, the Company is optimistic that it will be able to improve financial and operational performance in order to provide access to clean and environmentally friendly energy that is reliable and affordable. "Operational excellence is our priority to become a world-class green energy company," concluded Nelwin.

About PT Pertamina Geothermal Energy Tbk

PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) is part of PT Pertamina (Persero) Subholding Power & New Renewable Energy (PNRE), which is engaged in geothermal exploration, exploitation, and production. Currently, PGE manages 13 Geothermal Working Areas (WKP) and 1 Assigned Working Area with an installed capacity of 1,877 MW. In detail, 672 MW are managed directly and 1,205 MW are managed under the Joint Operation Contract scheme. The installed geothermal capacity in the PGE working area contributes around 80% 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 wants to create value by maximizing end-to-end management of geothermal potential and its derivative products and participating in the national and global decarbonation agenda to support Indonesia's net zero emission goal 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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