Nusantara Regas Returns Paid-Up Capital in 3.5 Years

Nusantara Regas has announced that the company has paid back equity to its shareholders in three and a half years.

President Director of Nusantara Regas Tammy Meidharma Sumarna said that the equity return to shareholders is evident from the amount of dividends paid by the company. In three and half years, the amount of dividends paid by Nusantara Regas has exceeded the paid-up capital of its shareholders.

Nusantara Regas is 60 percent owned by Pertamina and 40 percent owned by Perusahaan Gas Negara (PGN). The two state oil and gas firms have a US$ 145 million equity stake in Nusantara Regas. (Read: Expensive Gas Prices, Industry Hards to Compete due to Expensive Gas Price)

As of 2014, total dividends paid by Nusantara Regas to Pertamina and PGN amounted to US$ 124 million. At a general meeting of shareholders (AGM) on 9 May, Nusantara Regas agreed to pay out its entire net profit in 2015 in dividends.

"So actually we have paid up nearly US$ 200 million," said Tammy in a Pertamina official release on Monday (23/5). (Read: Threatened deficit, Pertamina to Start Importing LNG amid Looming Deficit)

The company’s financial performance is attributed to its efficiency. The company's net profit is solid, despite poor operating performance. According to Tammy, only 60 percent of the company’s installed capacity is currently being utilised.

Tammy hoped that the company could increase its utilisation in the third quarter of this year. Pertamina Gas is currently building a pipeline from Muara Karang to Tegalgede (via Muara Tawar). Once the pipeline is completed, Nusantara Regas will supply gas to the PLN power plant in Muara Tawar. (Read: Lampung FSRU Gas Facility Readies to Support Widodo’s Electricity megaproject)

As a result, the amount of gas sold to PLN will increase. When the pipeline is finished, Nusantara Regas is expected to be able to sell gas to the industry through Pertagas and Pertaniaga Gas.

Tammy is quite optimistic of an improvement in the company’s projects and business in the future. Gas demand for electricity generation will continue to rise, particularly as approximately 13 GW of the 35 GW power plant project be generated using gas.

Opportunities are wide open for Nusantara Regas, given 60 percent of the gas-fired power plants will be built on the island of Java, the largest being in Jakarta. From the outset, the business focus of Nusantara Regas has been supplying gas needs in western Java. (Read: Pertamina Threatens to Withdraw from Java 1 Power Project)

PLN will construct two 400 MW power plants in Muara Karang, Jakarta as part of the 35 GW project. Eight cargoes or about 40-80 million cubic feet per day (mmscfd) of gas will be needed to supply the two power plants.

Nusantara Regas was founded on 14 April 2010 and began operating in mid-2012. The scope of its business is the storage and regasification of liquefied natural gas (LNG), including gas transportation facilities and other related infrastructure.