Barito Renewables Profits Surge 29% as Green Energy Expansion and Lower Debt Costs Drive Gains

JAKARTA, Investortrust.id — Indonesian renewable energy giant PT Barito Renewables Energy Tbk (BREN) delivered a 29% surge in first-half net profit, fueled by expanding revenues and declining finance costs across its clean power assets.

The green energy flagship controlled by billionaire Prajogo Pangestu posted a net profit of $105.98 million for the six months ending June 30, 2026, up sharply from $82.13 million in the same period last year.

Barito Renewables' strong H1 performance underscores the accelerating profitability of Southeast Asia's renewable energy sector as long-term power purchase agreements deliver consistent cash flows. Strong double-digit bottom-line growth reinforces investor confidence in large-scale geothermal and wind investments, highlighting how operational efficiency and lower borrowing costs can significantly enhance equity returns in capital-intensive green infrastructure.

Operational Revenues Power Double-Digit Growth

Top-line revenue expanded to $334.44 million in H1 2026 from $300.07 million in the prior-year period, reflecting strong energy generation across its geothermal and wind energy installations.

Management attributed the top-line performance to consistent output from core assets, bolstered by early-year capital upgrades.

"Looking ahead, we remain focused on executing our planned expansion projects and further strengthening the company's position as one of Indonesia's leading renewable energy players," Hendra Soetjipto Tan, CEO of Barito Renewables, said in a statement on Friday, July 31, 2026.

Tan emphasized that the completion of the Wayang Windu geothermal retrofit project early this year directly enhanced the company's geothermal portfolio performance, driving double-digit growth across revenue and EBITDA.

Disciplined Overhead and Reduced Financing Costs

A disciplined cost structure further widened profit margins despite depreciation and amortization rising to $53.48 million from $47.73 million due to ongoing asset deployment.

Employee compensation expenses fell to $19.35 million from $21.63 million, while consultancy and technical fees decreased to $6.46 million compared to $7.26 million in H1 2025.

Production allowances paid to state-owned geothermal operator PT Pertamina Geothermal Energy (PGE) remained stable at $9.25 million, compared to $9.16 million in the previous year.

Crucially, finance costs tumbled to $55.72 million from $58.79 million, driving pre-tax income up 20.5% to $183.61 million. Net profit attributable to the parent entity climbed to $87.15 million, up from $65.47 million in H1 2025.