October 28, 2020 Read More →

State-owned Philippines electricity company reports massive loss

The Jakarta Post:

State-owned electricity giant PLN has booked trillions of rupiah in losses so far this year due to lower energy demand and a weak rupiah exchange rate during the COVID-19 outbreak. PLN posted a Rp 12.2 trillion (US$872.8 million) loss in the January-September period, which compares to a profit of Rp 10.8 trillion achieved over the same period last year, the company’s latest financial statement shows. The company’s revenue rose 1.4 percent year-on-year (yoy) to Rp 212.2 trillion in the first nine months of this year from Rp 209.3 trillion last year. Meanwhile, expenses declined by 3.5 percent yoy to Rp 223.8 trillion from Rp 231.9 trillion in 2019, even though the figure still exceeded its income.

“Due to COVID-19 and the global energy downturn, PLN’s chances of a material price increase and more robust cash flow are very low for at least another 18-36 months,” said Melissa Brown of the Institute for Energy Economics and Financial Analysis (IEEFA) on Oct 23. 

According to Brown’s latest report, PLN would need to increase prices by 30 percent to improve its cash flow, a move “that would surely test public approval.”

[Norman Harsono]

More: PLN books Rp 12.2 trillion net loss as COVID-19 proves double whammy

Posted in: IEEFA In the News

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