Publicly listed oil and gas company PT Elnusa Tbk (ELSA) will team up with parent company PT Pertamina and American energy corporation Chevron to develop flare gas-powered plants in Indonesia. In another deal, Indonesian cable television operator PT MNC Sky Vision Tbk (MSKY) is planning to raise Rp 771 billion ($58 million) through private share placement.
Flare gas project
President Director of Elnusa Tolingul Anwar said Chevron and Pertamina will supply the flare gas, while Elnusa will be the operator of the plant. The partnership is expected to be a profitable venture that provides solution to environmental impacts generated by industrial plants.
“Using flare gas as power plant fuel is one way we can minimize environmental damage. At the same time, room of potential in this sector is still huge, as it could subtitute the diesel power plants currently in use by oil companies,” said Anwar.
In Indonesia, industrial plants such as petroleum refineries, chemical plants, as well as oil or gas production sites are estimated to be generating around 200 million standard cubic feet of flare gas per day (mmscfd). Every 0.5 mmscfd of gas could produce 700 kilo vot ampere (KvA) to 800 KvA.
Elnusa booked 44 per cent increase in bottom line to Rp93 billion in the first quarter this year from the same period in 2015 of Rp65 billion. Profit margin jumped from 7 per cent to 10.2 per cent because of the increase.
Growth in net income was maintained by restructuring costs and boosting efficiency. In contrast, the company’s first quarter revenue was slightly down 0.4 per cent to Rp921 billion amid weak oil prices.
MNC Sky private placement
Owner TV satellite Indovision MNC Sky said it plans to sell up to a 10 per cent stake in a private placement for business expansion and strengthening capital structure.
The company will sell up to 706.3 million shares at Rp1.090 each. Parent company PT Global Mediacom Tbk will act as standby buyer for the sale.
“We also want to invite a number of strategic, domestic investors to partner with us. The funds will be used to content development and boosting channel capacity,” said MNC Sky Management in a statement today.
MNC Sky Vision, controlled by Indonesian powerful conglomerate and politician Hary Tanoe, is the country’s largest pay-TV provider with an estimated 2.7 million subscribe to brands Indovision, TopTV and Skyvision.