Jakarta, CNBC Indonesia – PT Pertamina (Persero) recorded a profit of above US $ 1 billion or around Rp.14 trillion in 2020 despite facing this triple shocks because of the Covid-19 pandemic.
This was disclosed by Pertamina’s Managing Director Nicke Widyawati to CNBC Indonesia, Thursday (04/02/2021).
“And what is not less important is even affected triple shocks because of Covid-19 in 2020, Pertamina managed to book a profit of over US $ 1 billion or around Rp. 14 trillion, at a time when the world’s oil and gas companies suffered heavy losses, “he told CNBC Indonesia, Thursday (04/02/2021).
As is known at the beginning of the Covid-19 pandemic in March 2020, Pertamina experienced triple shocks, namely a decrease in oil prices, a decrease in oil demand, and a weakening of the rupiah exchange rate against the United States dollar.
At the start of the pandemic last year, oil prices hit their lowest point in April-May, even when the WTI oil price was recorded to be minus. Then, from the demand side of oil, at the start of the pandemic when the government implemented Large-Scale Social Restrictions (PSBB) which limited people’s activities, the national demand for fuel oil, according to him, fell by 25%. In fact, in a number of big cities, the decline in fuel demand had dropped by more than 50%.
Likewise in terms of the rupiah exchange rate, at the beginning of the pandemic, it weakened, so according to him this had a significant impact on the energy sector business.
However, this condition is actually used by Pertamina to import more. By importing when oil prices are low, according to him, this will have an impact on reducing the company’s cost of production, especially in the second half of 2020 when oil prices start to increase.
“April-May we buy oil in large quantities and stored in landed storage and ships, so that it has an impact on reducing the cost of production, “he said.
In addition, he continued, the company will also continue to make adjustments and efficiency during 2020, thereby reducing costs.
“So, the energy sector must perform efficiency in 2020, for adjustment to existing conditions, “he said.
Meanwhile, world oil and gas companies such as Exxon Mobil Corporation, Chevron Corporation, and BP reported their weak financial performance throughout 2020. All three recorded losses during 2020.
BP, a British oil and gas company, posted a net loss of US $ 5.7 billion in 2020, a significant drop compared to the net profit of US $ 10 billion in 2019, as quoted by CNBC International, Tuesday (02/02/2021).
Meanwhile Exxon Mobil posted a loss of US $ 20.1 billion during the fourth quarter of 2020, marking a fourth straight quarter of losses as the energy giant grapples with the effects of the pandemic.
Chevron also posted a loss of US $ 11 million in the fourth quarter of 2020, making the total loss for 12 months throughout 2020 reached US $ 5.54 billion, compared to achieving a profit of US $ 2.92 billion in 2019.