Petrosea (PTRO) Poised for Profit Surge Backed by New Contracts
Main Takeaways
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JAKARTA, investortrust.id – PT Petrosea Tbk (PTRO), an Indonesian mining contractor, is set to experience substantial profit growth starting this year, bolstered by the acquisition of major new contracts. The company’s compound annual growth rate (CAGR) is projected to reach 140% through 2027.
Sucor Sekuritas analyst Yoga Ahmad Gifari stated that Petrosea’s strong profit trajectory is not only driven by newly secured high-value contracts but also by support from its parent company.
“We expect the company to continue securing sizable mining contracts, as Barito Group still owns several mining assets available for development. These assets could be allocated to PTRO to unlock further value,” he noted in a recent research report.
Expanding Mining Operations
A subsidiary of PT Petrindo Jaya Kreasi Tbk (CUAN), Petrosea has already secured Rp 20 trillion ($1.28 billion) worth of mining contracts from Vale and Bara Prima Mandiri. These mining operations are expected to commence by the end of 2025, significantly boosting Petrosea’s production volumes.
Sucor Sekuritas estimates that the company’s overburden removal volume will reach 218 million bank cubic meters (bcm) by 2027, reflecting an average annual growth rate of 25% over the next three years. This surge is anticipated to drive Petrosea’s net profit to $134 million by 2027.
Strong Financial Position
In addition to operational expansion, Sucor Sekuritas highlighted Petrosea’s healthy financial standing. The company’s debt-to-equity ratio stood at 1.6 times in 2024. “With profit growth expected to accelerate over the next three years, the debt ratio may rise in the short term but is projected to decline starting next year,” the report noted.
2024 Financial Performance
Commenting on Petrosea’s 2024 financial results, Yoga stated that the company’s performance aligned with expectations. The firm recorded a net profit of $9.7 million, equivalent to 121% of Sucor Sekuritas’ target.
Petrosea’s net profit attributable to the parent entity declined to $9.69 million in 2024 from $12.2 million in the previous year. However, this was offset by revenue growth from $577.61 million to $690.81 million during the same period.