Jakarta. Petrosea, a subsidiary of Petrindo Jaya Kreasi (CUAN) under the Barito group, is on a significant recovery path, according to market analyst Yoga Ahmad Gifari from Sucor Sekuritas.

According to Yoga, two main factors are driving the positive outlook for PTRO.

"First, PTRO financial prospects are promising due to the increased volume of mining contracts from new contracts and higher contributions from coal mining as sales volumes rise," he said.

Since being acquired by CUAN, PTRO has secured contracts worth $1.8 billion. "These contracts have increased the revenue backlog in the EPC sector and mining contracts by 152 percent and 60 percent, respectively, indicating strong revenue growth prospects," Yoga added.

Additionally, PTRO has acquired coal mining assets in East Kalimantan with reserves of nearly 50 million tons. Production in 2023 reached 0.3 million tons, with plans to increase to 5 million tons per year within the next 3-4 years. "This expansion is expected to generate $250 million in revenue by 2028, contributing 22 percent of the total revenue," explained Yoga.

The second factor supporting PTRO recovery is the entry of new shareholders who bring substantial opportunities.

"Untapped mining assets from CUAN and PT Singaraja Putra Tbk (SINI), including coal, gold, and silica, could lead to business growth and additional revenue," added Yoga. These assets are known to be in the development stage and have not yet been included in current projections.

PTRO has also started diversifying its mining contractor business into mineral projects such as gold, bauxite, and nickel. Currently, the company has successfully secured a contract from a nickel mine owned by a subsidiary of PT Aneka Tambang Tbk (ANTM) with a two-year duration.

In addition, PTRO will benefit from the government’s approval of the Work Plan and Budget (RKAB) for several coal mining companies, which have a production target of 922 million tons of coal during the 2024-2026 period. This target indicates growth compared to the production realization in 2023.

Petrosea has successfully established itself as a strong EPS and mining contractor in Indonesia, capable of attracting contracts from multinational oil and gas companies as well as domestic oil and gas firms.

The company has successfully secured contracts from several major oil and gas and mining companies, such as Freeport, BP, Unocal, Total, ConocoPhillips, Newmont, Bayan Group, Kideco, and others. PTRO has a strong relationship with Freeport, which is the largest EPS customer for the company, contributing 47 percent of the total EPS revenue.

The company has also secured EPS contracts worth $448 million from BP and Vale Indonesia. This amount represents 30 percent of the total EPC contracts the company has secured. 

Additionally, Yoga added, Petrosea (PTRO) is now listed as one of the six largest coal mining contractors in Indonesia, with total coal production reaching 17 million tons and overburden removal reaching 131 million bcm in 2023. The company has also secured a lifetime contract from its parent company, SINI, valued at $1.08 billion.

With various strategic steps and strong growth prospects, PT Petrosea Tbk (PTRO) shows great potential in facing challenges and opportunities. This significant recovery makes PTRO one of the notable issuers in the mining industry in Indonesia.