21 July 2020

Elnusa Optimistic Performance Remains Positive Despite Triple Shock

Jakarta, July 21, 2020 - PT Elnusa Tbk (Elnusa), a national energy supply company to improve the performance of three shocks. The decline in world oil prices has an impact on the decline in KKKS oil and gas activity, a reduction in the national fuel consumption co-19 pandemic, and the weakening of the Rupiah which is the three surprises that cause Elnusa at this time.

Elnusa’s Managing Director, Ali Mundakir said “Three surprises that are increasing the performance of many oil and gas service companies, both national and global. Due to oil prices and the Covid-19 pandemic, global oil and gas services have revised their performance targets. Therefore, it is reasonable if we also make an increase target or 25% of the initial target of the year. “

Globally, many companies rely solely on oil and gas migration services, which are increasingly significant. More than one in the amount to survive. “Nevertheless, Elnusa which has a strong foundation in business and with a complete portfolio from oil and gas services to oil and gas downstream services is very optimistic that it will show a positive performance. This is because even though there is pressure on one segment, another segment will sustain Elnusa’s assessment performance ”, Imbuh Ali.

In distribution, Elnusa is supported by three segments namely upstream oil and gas services, energy distribution & logistics services, and supporting services. Even though there was a decline in activity in the sector, non-asset based oil and gas based services (EPC-OM) continued to show resilience. Move from the original to the right. Likewise with the energy distribution and logistics services segment, performance in the fuel transportation business line and depo management remained stable.

Meanwhile, global oil and gas service companies are currently not only revising performance improvement targets but also increasing capital expenditure plans. Elnusa also needs to make investment costs in the midst of this. “We need to review and set priorities. Therefore we revised our capital expenditure plan to Rp800 billion from the original plan of Rp1.4 trillion, “Ali added.

Elnusa will develop a more balanced business portfolio going forward between the oil and gas services sector and downstream oil and gas services. Investment in upstream oil and gas services will be prioritized for services that can directly generate business income such as non-asset based upstream oil and gas services (EPC-OM). In the downstream oil and gas sector, investment will support the improvement of fuel depot facilities and facilities in the context of supporting specifically for fuel and LPG distribution outside Java. “With the right proportions, we agree that Elnusa will be more agile and flexible into current difficulties,” Ali concluded. *

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