Pertamina - Hubungan Investor
PT Pertamina (Persero):
1H16 (unaudited) results
August 2016
Strictly Private and Confidential
1
FINAL DRAFT
Disclaimer
By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following
limitations:
The information in this presentation has been prepared by representatives of PT Pertamina (Persero) (together with its subsidiaries, the “Company”) for
use in presentations by the Company at investor meetings and does not constitute a recommendation regarding the securities of the Company or any of its
affiliates.
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness
of the information, or opinions contained herein. Neither the Company nor any of the Company's affiliates, advisors or representatives shall have any
responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or
otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and
amendment and such information may change materially.
This presentation contains data sourced from third parties and the views of third parties. In replicating such data in this presentation, the Company makes
no representation, whether express or implied, as to the relevance, adequacy or accuracy of such data. The replication of any views in this presentation
should be not treated as an indication that the Company agrees with or concurs with such views.
This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that
subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives
are under an obligation to update, revise or affirm.
The information communicated in this presentation contains certain statements that are or may be forward-looking. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to, among other things, the operations, business, strategy,
plans, goals, consolidated results of operations and financial condition of the Company. These statements typically contain words such as “expects,” “plan,”
“will,” “estimates,” “projects,” “intends,” "anticipates" and words of similar import. Such forward-looking statements are based on numerous assumptions
regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature,
forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Any
investment in securities issued by the Company or any of its affiliates will also involve certain risks. There may be additional material risks that are currently
not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties,
readers should not rely on these forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to revise
them to reflect future events or developments.
This presentation and the information contained herein do not constitute or form part of any offer for sale or subscription of, or solicitation or invitation of any
offer to buy or subscribe for, any securities of the Company, including any notes to be issued under the Company’s global medium term note program (the
“Notes”), in any jurisdiction. Any decision to purchase or subscribe for any securities of the Company, including the Notes, should be made solely on the
basis of information contained in the offering memorandum (as supplemented or amended) issued in respect of the offering of such securities (which may
be different from the information contained herein) after seeking appropriate professional advice, and no reliance should be placed on any information other
than that contained in the offering memorandum (as supplemented or amended).
This presentation is confidential and the information contained herein are being furnished to you solely for your information and may not be reproduced or
redistributed to any other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may be, directly
or indirectly, taken or transmitted or distributed.
The information contained in this presentation is provided as at the date of this presentation and is subject to change without notice.
2
FINAL DRAFT
1H16 Highlights
Key Financial Highlights (USD Billions)
Revenues by Segment (Percentage)
1H16
1H15
ICP (USD/BBL)
36.16
55.35
Revenues
17.20
21.79
EBITDA
4.10
2.35
Net Income
1.83
0.57
Cash Balance
5.09
3.39
SG&A Cost (OPEX)
1.09
0.98
Upstream
8%
9%
Downstream
& Others
92%
91%
1H16
EBITDA by Segment (Percentage)
Continuous Efficiency Programs
1. Procurement centralization
2. Efficiency on Hydro Procurement
3. Supply Chain Management
4. Marketing Operation Excellence
5. Upstream Efficiency Initiative
6. OPEX reduction
7. Refining Operation Efficiency Initiative
1H15
Upstream
22%
64%
36%
Downstream
& Others
78%
1H16
1H15
3
FINAL DRAFT
Recent Developments
RDMP Cilacap
Pertamina and Saudi Aramco signed the Engineering and
Project Management Services Contract to commence the
Basic Engineering Design study for Cilacap refinery
development
The contract is awarded to Amec Foster Wheeler Energy
Limited
Increased production from Cepu field
Pertamina EP Cepu has reached its targeted production
of 165 MBOPD with a possibility of higher production.
Oil Production (Pertamina share) increased from 28.20
MBOPD in 1H15 to 70.96 MBOPD in 1H16. (average)
Gas Production (Pertamina share) increased from 5.81
MMSCFD in 1H15 to 24.36 MMSCFD in 1H16.
(average)
Grass Root Refinery Tuban
Pertamina signed Framework Agreement with Rosneft,
which indicates in broad terms the possible areas of
cooperation between the two companies. The Framework
Agreement is valid until December 2016.
The agreement covers the plan to develop Grass Root
Integrated Refinery and Petrochemical Plant.
Pertamina aims to have a controlling stake of 55%, target
capacity of 300 KBPD with a complexity >9 NCI.
Efficiency Program
Breakthrough Project (BTP) New Initiatives yielded
efficiency of US$ 1.09 Billion in 1H 2016.
Includes Optimization of Integrated Supply Chain, Hydro
Procurement, Marketing Operation Excellence and
Upstream Efficiency Initiative.
Source: Pertamina
4
FINAL DRAFT
Financial Performance
USD Billions
-2%
71.10
-53%
-40%
3.06
70.00
Revenues
Net Profit
-21%
41.76
21.79
+221%
17.20
1.83
-2%
2013
2014*
1H15
1H16
1.45
1.42
0.57
-1%
66.26
2015
-42%
65.56
COGS & OPEX
2013
-31%
37.84
20.22
2014*
2015
1H15
2015
1H15
1H16
13.91
-14%
EBITDA
2013
2014*
1H16
-11%
6.66
5.74
Income from
Operations
4.84
+74%
5.13
-8%
-12%
4.44
4.10
+110%
3.92
3.29
2.35
1.56
2013
2014*
2015
*Restated
1H15
1H16
2013
2014*
2015
1H15
1H16
5
FINAL DRAFT
Upstream Performance
Daily Oil Production
(MBOPD)
Daily Gas Production
(MMSCFD)
+11%
+34%
+3%
278
270
274
305
202
2013
2014*
2015
1H15
1H16
+18%
+18%
1.528
2013
2014
1.602
2015
1H15
1H16
607
548
465
2013
Yearly Gas Production
(BSCF)
2014*
2015
+16%
640
551
1H15
1H16
Yearly Oil and Gas Production
(MMBOE)
+18%
+3%
+11%
1.938
1.902
Yearly Oil Production
(MMBO)
+34%
+21%
+6%
1.613
Daily Oil and Gas Production
(MBOEPD)
+18%
+11%
+6%
98,61
101,60
+12%
73,55
2013
2014*
2015
49,60
55,58
1H15
1H16
694
558
589
+22%
290
2013
2014
2015
1H15
200
221
353
1H16
+16%
170
100
2013
2014*
2015
1H15
116
1H16
*Restated due to change in the method of accounting record
Production figures includes overseas production & entitlement. 1H16 consists of 182 days (leap year), 1H15 consists of 181 days.
6
FINAL DRAFT
Refining Performance
Total Output (MMBbl)
Total Intake (MMBbl)
0%
314,03
+1%
-3%
314,42
297,36
295,27
305,95
-2%
290,22
+10%
164,53
149,05
2013
2014
2015
+10%
1H15
1H16
Volume Valuable Product (MMBbl)
227,59
2013
229,98
2014
2015
1H15
1H16
Yield Valuable Product On Total Intake (%)
0%
+1%
155,44
141,11
231,05
+6%
+3%
+1%
72,47
73,14
75,52
74,32
2013
2014
2015
1H15
78,64
+17%
110,77
2013
2014
2015
1H15
129,38
1H16
1H16
7
FINAL DRAFT
Marketing & Trading Performance
Fuel Sales (Million KL)
0%
65,37
Non-Fuel Sales (Domestic Gas & Petrochemical ) (Million KL)
65,30
+1%
+14%
-6%
13,80
61,69
13,98
12,06
+6%
+4%
2013
2015
2014
30,07
31,25
1H15
1H16
Lubricant Sales (Million KL)
2013
2014
2015
6,74
7,17
1H15
1H16
Shift in Fuel Consumption (Total National Sales)
January 2016
-23%
0,58
4,2%
0,6%
8,4%
+3%
0,44
Jun 2016
12,9%
0,7%
0,46
13,3%
+5%
0,23
0,24
73,0%
86,8%
2013
2014
2015
1H15
1H16
PERTALITE (RON 90)
PERTAMAX (RON 92)
PERTAMAX PLUS (RON 95)
PREMIUM (RON 88)
8
FINAL DRAFT
Crude Oil Price & Future Outlook
Pertamina has taken several mitigation strategies to adjust to the changes in the oil price environment
External Price Forecast
USD/BBL
2015
2016
• Revised internal oil
price assumptions
• Revised internal oil
price assumptions
• 2015 capital
expenditure revised
down by c.40% from
original budget to
US$ 4.4bn
• Review of preapproved 2016
capital expenditure
and workplan &
budget
• 2015 operating
expense revised
down by c.19% from
original budget to
US$ 6.2bn
• Target to reduce
2016 operating
expense by US$ 1-2
Bn
• Maintaining credit
metrics to comply
with covenants/debt
related parameters
used by the Rating
Agencies
Source: Pertamina, Bloomberg, Thomson Reuters
80
70
60
50
40
30
20
10
-
56
49
62
65
61
66
69
68
51
38
2016
2017
2018
ICP
2019
2020
2021
Bloomberg Brent Forecast
Historical Brent Spot Price
USD/BBL
160
140
120
100
80
60
40
20
0
2007
Oil
Price
drop
2008
2009
2010
2011
2012
2013
2014
2015
Source: Pertamina
2016
9
FINAL DRAFT
thank you
1H16 (unaudited) results
August 2016
Strictly Private and Confidential
1
FINAL DRAFT
Disclaimer
By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following
limitations:
The information in this presentation has been prepared by representatives of PT Pertamina (Persero) (together with its subsidiaries, the “Company”) for
use in presentations by the Company at investor meetings and does not constitute a recommendation regarding the securities of the Company or any of its
affiliates.
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness
of the information, or opinions contained herein. Neither the Company nor any of the Company's affiliates, advisors or representatives shall have any
responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or
otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and
amendment and such information may change materially.
This presentation contains data sourced from third parties and the views of third parties. In replicating such data in this presentation, the Company makes
no representation, whether express or implied, as to the relevance, adequacy or accuracy of such data. The replication of any views in this presentation
should be not treated as an indication that the Company agrees with or concurs with such views.
This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that
subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives
are under an obligation to update, revise or affirm.
The information communicated in this presentation contains certain statements that are or may be forward-looking. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to, among other things, the operations, business, strategy,
plans, goals, consolidated results of operations and financial condition of the Company. These statements typically contain words such as “expects,” “plan,”
“will,” “estimates,” “projects,” “intends,” "anticipates" and words of similar import. Such forward-looking statements are based on numerous assumptions
regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature,
forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Any
investment in securities issued by the Company or any of its affiliates will also involve certain risks. There may be additional material risks that are currently
not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties,
readers should not rely on these forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to revise
them to reflect future events or developments.
This presentation and the information contained herein do not constitute or form part of any offer for sale or subscription of, or solicitation or invitation of any
offer to buy or subscribe for, any securities of the Company, including any notes to be issued under the Company’s global medium term note program (the
“Notes”), in any jurisdiction. Any decision to purchase or subscribe for any securities of the Company, including the Notes, should be made solely on the
basis of information contained in the offering memorandum (as supplemented or amended) issued in respect of the offering of such securities (which may
be different from the information contained herein) after seeking appropriate professional advice, and no reliance should be placed on any information other
than that contained in the offering memorandum (as supplemented or amended).
This presentation is confidential and the information contained herein are being furnished to you solely for your information and may not be reproduced or
redistributed to any other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may be, directly
or indirectly, taken or transmitted or distributed.
The information contained in this presentation is provided as at the date of this presentation and is subject to change without notice.
2
FINAL DRAFT
1H16 Highlights
Key Financial Highlights (USD Billions)
Revenues by Segment (Percentage)
1H16
1H15
ICP (USD/BBL)
36.16
55.35
Revenues
17.20
21.79
EBITDA
4.10
2.35
Net Income
1.83
0.57
Cash Balance
5.09
3.39
SG&A Cost (OPEX)
1.09
0.98
Upstream
8%
9%
Downstream
& Others
92%
91%
1H16
EBITDA by Segment (Percentage)
Continuous Efficiency Programs
1. Procurement centralization
2. Efficiency on Hydro Procurement
3. Supply Chain Management
4. Marketing Operation Excellence
5. Upstream Efficiency Initiative
6. OPEX reduction
7. Refining Operation Efficiency Initiative
1H15
Upstream
22%
64%
36%
Downstream
& Others
78%
1H16
1H15
3
FINAL DRAFT
Recent Developments
RDMP Cilacap
Pertamina and Saudi Aramco signed the Engineering and
Project Management Services Contract to commence the
Basic Engineering Design study for Cilacap refinery
development
The contract is awarded to Amec Foster Wheeler Energy
Limited
Increased production from Cepu field
Pertamina EP Cepu has reached its targeted production
of 165 MBOPD with a possibility of higher production.
Oil Production (Pertamina share) increased from 28.20
MBOPD in 1H15 to 70.96 MBOPD in 1H16. (average)
Gas Production (Pertamina share) increased from 5.81
MMSCFD in 1H15 to 24.36 MMSCFD in 1H16.
(average)
Grass Root Refinery Tuban
Pertamina signed Framework Agreement with Rosneft,
which indicates in broad terms the possible areas of
cooperation between the two companies. The Framework
Agreement is valid until December 2016.
The agreement covers the plan to develop Grass Root
Integrated Refinery and Petrochemical Plant.
Pertamina aims to have a controlling stake of 55%, target
capacity of 300 KBPD with a complexity >9 NCI.
Efficiency Program
Breakthrough Project (BTP) New Initiatives yielded
efficiency of US$ 1.09 Billion in 1H 2016.
Includes Optimization of Integrated Supply Chain, Hydro
Procurement, Marketing Operation Excellence and
Upstream Efficiency Initiative.
Source: Pertamina
4
FINAL DRAFT
Financial Performance
USD Billions
-2%
71.10
-53%
-40%
3.06
70.00
Revenues
Net Profit
-21%
41.76
21.79
+221%
17.20
1.83
-2%
2013
2014*
1H15
1H16
1.45
1.42
0.57
-1%
66.26
2015
-42%
65.56
COGS & OPEX
2013
-31%
37.84
20.22
2014*
2015
1H15
2015
1H15
1H16
13.91
-14%
EBITDA
2013
2014*
1H16
-11%
6.66
5.74
Income from
Operations
4.84
+74%
5.13
-8%
-12%
4.44
4.10
+110%
3.92
3.29
2.35
1.56
2013
2014*
2015
*Restated
1H15
1H16
2013
2014*
2015
1H15
1H16
5
FINAL DRAFT
Upstream Performance
Daily Oil Production
(MBOPD)
Daily Gas Production
(MMSCFD)
+11%
+34%
+3%
278
270
274
305
202
2013
2014*
2015
1H15
1H16
+18%
+18%
1.528
2013
2014
1.602
2015
1H15
1H16
607
548
465
2013
Yearly Gas Production
(BSCF)
2014*
2015
+16%
640
551
1H15
1H16
Yearly Oil and Gas Production
(MMBOE)
+18%
+3%
+11%
1.938
1.902
Yearly Oil Production
(MMBO)
+34%
+21%
+6%
1.613
Daily Oil and Gas Production
(MBOEPD)
+18%
+11%
+6%
98,61
101,60
+12%
73,55
2013
2014*
2015
49,60
55,58
1H15
1H16
694
558
589
+22%
290
2013
2014
2015
1H15
200
221
353
1H16
+16%
170
100
2013
2014*
2015
1H15
116
1H16
*Restated due to change in the method of accounting record
Production figures includes overseas production & entitlement. 1H16 consists of 182 days (leap year), 1H15 consists of 181 days.
6
FINAL DRAFT
Refining Performance
Total Output (MMBbl)
Total Intake (MMBbl)
0%
314,03
+1%
-3%
314,42
297,36
295,27
305,95
-2%
290,22
+10%
164,53
149,05
2013
2014
2015
+10%
1H15
1H16
Volume Valuable Product (MMBbl)
227,59
2013
229,98
2014
2015
1H15
1H16
Yield Valuable Product On Total Intake (%)
0%
+1%
155,44
141,11
231,05
+6%
+3%
+1%
72,47
73,14
75,52
74,32
2013
2014
2015
1H15
78,64
+17%
110,77
2013
2014
2015
1H15
129,38
1H16
1H16
7
FINAL DRAFT
Marketing & Trading Performance
Fuel Sales (Million KL)
0%
65,37
Non-Fuel Sales (Domestic Gas & Petrochemical ) (Million KL)
65,30
+1%
+14%
-6%
13,80
61,69
13,98
12,06
+6%
+4%
2013
2015
2014
30,07
31,25
1H15
1H16
Lubricant Sales (Million KL)
2013
2014
2015
6,74
7,17
1H15
1H16
Shift in Fuel Consumption (Total National Sales)
January 2016
-23%
0,58
4,2%
0,6%
8,4%
+3%
0,44
Jun 2016
12,9%
0,7%
0,46
13,3%
+5%
0,23
0,24
73,0%
86,8%
2013
2014
2015
1H15
1H16
PERTALITE (RON 90)
PERTAMAX (RON 92)
PERTAMAX PLUS (RON 95)
PREMIUM (RON 88)
8
FINAL DRAFT
Crude Oil Price & Future Outlook
Pertamina has taken several mitigation strategies to adjust to the changes in the oil price environment
External Price Forecast
USD/BBL
2015
2016
• Revised internal oil
price assumptions
• Revised internal oil
price assumptions
• 2015 capital
expenditure revised
down by c.40% from
original budget to
US$ 4.4bn
• Review of preapproved 2016
capital expenditure
and workplan &
budget
• 2015 operating
expense revised
down by c.19% from
original budget to
US$ 6.2bn
• Target to reduce
2016 operating
expense by US$ 1-2
Bn
• Maintaining credit
metrics to comply
with covenants/debt
related parameters
used by the Rating
Agencies
Source: Pertamina, Bloomberg, Thomson Reuters
80
70
60
50
40
30
20
10
-
56
49
62
65
61
66
69
68
51
38
2016
2017
2018
ICP
2019
2020
2021
Bloomberg Brent Forecast
Historical Brent Spot Price
USD/BBL
160
140
120
100
80
60
40
20
0
2007
Oil
Price
drop
2008
2009
2010
2011
2012
2013
2014
2015
Source: Pertamina
2016
9
FINAL DRAFT
thank you