ELSA Expansion Strategy Targets Coal and Nickel Mining Exploration
01 Dec 2024, 03:57 PM
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PT Elnusa Tbk (ELSA) continues its diversification strategy by expanding beyond the oil and gas sector. This subsidiary of PT Pertamina Hulu Energi is now carrying out an expansion into the mining sector.Most recently, ELSA conducted its first seismic survey in the coal mining concession area of PT Wahana Baratama Mining, a subsidiary of PT Bayan Resources Tbk (BYAN). The mining concession is located in Tanah Laut, South Kalimantan.The President Director of Elnusa, Bachtiar Soeria Atmadja, stated that the seismic survey marks a new step for ELSA in coal mining exploration in Indonesia. “This survey is a significant milestone for Elnusa as proof of our capability in providing superior geoscience survey solutions,” said Bachtiar in a public disclosure on Tuesday (November 26).In a separate interview, Elnusa's Corporate Communication Manager, Jayanty Oktavia Maulina, revealed that the duration of the work in this contract will run from September 23, 2024, to March 15, 2025, with the agreement term valid until June 10, 2025."The scope of this collaboration includes the acquisition of seismic data to support exploration in the coal mining area managed by PT Wahana Baratama Mining," said Jayanty to Kontan.co.id on Sunday (December 1).Jayanty added that this partnership is an initial step to expand ELSA's business portfolio beyond the oil and gas sector, including exploration in coal mining and other mining commodities such as nickel. "This aligns with our diversification strategy to increase contributions from the non-oil and gas sector" Jayanty emphasized.However, Jayanty did not disclose the potential revenue ELSA could generate from this mining exploration segment. What is certain is that, following the collaboration with Wahana Baratama Mining, ELSA is open to exploring potential partnerships with other coal companies or the mineral mining sector.Jayanty explained that strategically, ELSA continues to expand its business portfolio to create new sources of revenue. Going forward, ELSA will focus on strengthening its energy distribution and logistics segment, depot management, and EPC-OM (engineering, procurement, construction & operation maintenance) services.In addition, ELSA is also targeting potential opportunities in the geothermal sector. "We will leverage our competencies in geoscience and exploration to support the development of new fields in Indonesia," said Jayanty.For the remainder of this year, ELSA's main strategy is to strengthen existing operational services, complete strategic projects, and explore new opportunities in both the energy and non-oil and gas sectors."We are optimistic that Elnusa's performance through the end of 2024 will show solid growth," said Jayanty.Meanwhile, both the top line and bottom line of ELSA showed positive growth through Q3 2024. ELSA's revenue grew by 7.46% year-on-year (YoY), rising from IDR 8.98 trillion to IDR 9.65 trillion.In addition, ELSA's net profit increased by 35.57% year-on-year (YoY), rising from IDR 406.60 billion to IDR 551.23 billion as of September 2024. "Until the third quarter of 2024, we have recorded significant growth across various business segments" said Jayanty.In the first nine months of 2024, ELSA has absorbed capital expenditure (capex) amounting to IDR 302 billion. This represents 57.41% of ELSA's capex budget for the year, which is IDR 526 billion.ELSA's capex investments are allocated across various segments, including geophones, mobile welltest & wireline cables for upstream services, fuel tanker vehicles to support energy distribution services, and dredging barges to support upstream business operations.For the remainder of the year, ELSA plans to realize capex investments in several areas, including cementing (CMT) and coiled tubing (CTU) units for upstream services. For the distribution services segment, further investment in fuel tanker vehicles is also planned."The projected capex absorption for ELSA by the end of the year is still on track with the target" Jayanty concluded.
