Year 2015 was a good momentum for the Company because of Itochu Corporation became a shareholder in PT Triguna Internusa Pratama and also for the loan facility of USD 70 million received from The Hongkong and Shanghai Bank Corporation (HSBC).
The Company succeeded in earning the trust of strategic partners such as Itochu Corporation and HSBC. This will strenghten foundation of the Company to growth the bussiness. Itochu Corporation through an increase of the authorized capital and paid-up capital become a shareholder of 33% shares in PT Triguna Internusa Pratama. The Company successfully received a loan facility from HSBC that will be used to refinance loan from the Bank BII Maybank and for funding new projects of the Company and Company’s Subsidiary.
On the other hand, the Indonesia’s weak economic growth in year 2015 contributed to the decrease of the Company’s revenues. The weakening of economic condition forced the customers in the Province of Banten and the Province of West Java to reduce their production and impacted the Company revenue because of less gas consumption. The gas transportation in the Province of Jambi decrease caused by the decrease of gas supply from JOB Pertamina - Talisman Jambi Merang field. The revenue from gas transportation in overall was decrease by 15% as compared from the previous year.
Similar to the gas transportation services, the Company’s gas trading business in the Province of Banten and West Java also significantly decreased due to the same problems. The Company was grateful that the decline can be compensated by the increasse of gas trading from ConocoPhillips field in the Province of Jambi which ultimately surpass the volume of gas trading in year 2014. The Company also proud by the operation of PT Energi Prima Raharja in LNG trading not only because PT Energi Prima Raharja succeeded in contributing to the Company’s revenues but also because of its operation became a pioneer of the LNG trading business model for industries in Indonesia.
The decrease in revenues from gas compression services by 25% caused by the reduction of gas services price based on the new contract. The decrease also influenced by the weakening of rupiah currency against dollar since the gas compression revenue received in Rupiahs. Therefore, even though the volume of gas compression increased, the revenues decreased. In other business sectors, a divestment of the Company’s ownership in the LPG filling business and the operation cessation of the Company’s business in port services in North Sulawesi also contributed to the decrease of the Company’s revenues. Even though the Company lost revenues from these businesses, the Company believes that being focused to core energy business will enhance the Company sustainability in a long run.
To overcome challenges faced by the Company, the Board of Directors took two major strategies which were the sales strategy and efficiency strategy. The Company provided price rebate for customers who purchased gas above the contract value. This strategy sucessfully arrested further declining in revenue, and resulted the Company’s total revenues of USD 193,571,689.- or decreased by 1.8% as compared to the Company’s revenues in year 2014 of USD 197,116,782.-.
Efficiency strategy implemented by managing the cost of distribution and operation of gas infrastructure facilities which was able to reduce the Company’s cost of revenues by 4.1%. It had a positive impact as the Company net profit of USD 7,868,144.- in year 2015 increased by 2.8% from USD 7,656,375.- in year 2014.
With the results achieved in 2015, the Company believes, the business will continously grow in the coming year.
The Government plan to revise the Regulation of the Minister of Energy and Mineral Resources No. 37 2015 which will allow non-state owned enterprises and non-regional owned enterprises which own gas infrastructure to involve in the business of gas trading, provide more opportunities to the Company in year 2016. The upcoming regulation revision is believed to provide more opportunities in increasing gas trading volume in year 2016.
In year 2016 the Company will implement business strategy as follow: