JAKARTA - PT Elnusa Tbk (ELSA) has revised its capital expenditure allocation (capex) to IDR 800 billion by the end of this year, lower than the target at the beginning of 2020 of IDR 1 trillion. This was conveyed by Ali Mundakir, President Director ELSA, in a press release on Monday (30/11).
According to Mundakir, the revision was carried out in response to triple [economic] shock situation amid the COVID-19 pandemic. "The triple shock faced by Elnusa has an impact on changes in the priority scale of several upstream oil and gas services, competitive profitability margins in procurement, construction, operation & maintenance (EPC-OM) services and fluctuations in rupiah exchange rate," he said.
He also mentioned that the capex would be used to support oil and gas equipment (oil and gas), infrastructure in the downstream sector, and periodic equipment maintenance. Utilization of funds amounting to IDR 800 billion, he said, was expected to be 70% realized by the end of the year.
According to him, Elnusa was optimistic that they could record growth in the future by diversifying their business portfolios, as well as maintaining long-term competence and experience in oil and gas sector. "Elnusa has a better chance of seizing those opportunities," he said. (LK/VA)