PGEO – Collaboration for geothermal project in Lampung

PGEO – Collaboration for geothermal project in Lampung Pertamina Geothermal Energy (PGEO) plans a USD220 mn (IDR3.4 tn) capex, in collaboration with Chevron, for the development of a 55 MW Geothermal Power Plant (PLTP) in Lampung's Way Ratai Block. The allocated capex comprises USD28.85 mn for exploration and is split with 40% from PGE and 60% from Chevron. To fund this, PGEO will optimize its USD660 mn internal cash reserves. The investment, spread over 4-5 years, aims for inorganic growth and may involve refinancing. PGEO targets a 50% payout ratio of 2023 net profit for dividends but remains flexible based on shareholder decisions. By 3Q23, Pertamina's subsidiary achieved a 4.3% yoy increase in production, reaching 3,586 GWh. Factors contributing to this include successful bottleneck resolution at Ulubelu (Units1-4) and maintenance activities in the Karaha area. Notable repairs were conducted in various geothermal power plant areas, enhancing overall production performance. (Source: Investor Daily)