PGEO - Booked +30,1% yoy to USD92.7 mn of 1H23 net profit from USD71,3 mn

Pertamina Geothermal Energy (PGEO) booked +30,1% yoy net profit growth in 1H23 to USD92.7 mn from USD71.3 mn. It was supported by +11.9% sales growth amidst raising +7.7% electricity production to 2,397 Gwh as well as cost efficiency. Its debt declined to USD731 mn from USD935 mn. Management is targeting FY23 power sales to reach 4,543 Gwh. (Source : Kontan) Comment : We view that management efforts on sales, production and efficiency, translated into strong NPM of 45% in 1H23. We also noticed that PGEO deleveraging strategy also strengthened its capital structure reflected by lower DER of 0,39x despite of recent issuing green bond for refinancing purpose.