JAKARTA. PT Petrosea Tbk (PTRO), a subsidiary of PT Indika Energy Tbk (INDY), plans to repurchase (buyback) its shares with a budget of US$ 2 million (Rp 30 billion) (in exchange rates of Rp15,000 per dollar).
PTRO management said that the buyback will be carried out in stages over a period of 3 months, from 11 June to 8 September 2020. In addition, management noted that the price of PTRO shares had declined by 18.75% during the period of 2 January to 9 June 2020 to the level of Rp 1,300 per share.
The significant decline, said PTRO management, did not reflect the company's positive performance. "So the company intends to show its commitment in order to increase its value to shareholders by returning excess free cash flow," explained PTRO management through information disclosure.
PTRO has appointed PT Mandiri Sekuritas to carry out the buyback. The buyback will be done at a lower price or the same as the closing price of the shares on the previous trading day.
PTRO management believes that buyback action will not reduce the company's revenue. However, this will have an impact on the company's asset value and equity. (KR/AR)