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Issuer Flash: PT Pertamina Geothermal Energy Tbk

Issuer: Pertamina Geothermal Energy | Document: Issuer Flash | Date: 2026-11-02 | Event: 9m 2026 Results

Report date: 2026-11-02 Event date: 2026-09-30 Event title: Nine-Month 2026 Interim Financial Statements

1. Flash Conclusion

PT Pertamina Geothermal Energy Tbk (PGE) reported higher revenue, gross profit and operating cash flow for the nine months ended September 2026. The listed geothermal generator's unaudited consolidated financial statements show revenue rising 10.5% year on year to US$352.2 million, net profit increasing 21.4% to US$126.6 million, and operating cash flow growing 7.1% to US$200.5 million. Cash and cash equivalents were US$713.7 million at 30 September, up from US$656.6 million at the June interim date cited in the previous flash, although still slightly below US$718.5 million at end-2025. The cash recovery since June is useful evidence that operating cash generation replenished liquidity after the first-half dividend, while the cumulative statement does not establish a durable quarterly run rate.

These results support the existing view of a contracted geothermal operator with a meaningful liquidity cushion, rather than resolve its capital-allocation and refinancing questions. Nine-month cash paid for property and equipment was US$72.3 million and dividends paid were US$123.9 million. Both compete with the cash available for development and the US$400 million global green bond due in April 2028. Cash at September exceeded the bond's principal, but it is not a ring-fenced repayment reserve, and the comparison ignores other obligations, spending needs and any restrictions on cash movement. The statements do not provide a new bond-redemption or refinancing plan.

PGE's Pertamina group relationship remains relevant to the established support-linked credit view. These interim statements do not establish an explicit Pertamina or Indonesian government guarantee of the bond. The 30 September Event date identifies the financial period end; an independent public posting date for the statements has not been confirmed.

2. Nine-Month Earnings and Operating Cash

US$ million, unless stated 9M 2026 9M 2025 Credit reading
Revenue 352.2 318.9 Up 10.5%; continued earnings growth strengthens internal funding capacity.
Gross profit 203.5 178.6 Up 13.9%; gross margin increased to about 57.8% from 56.0%.
Profit before tax 183.2 147.5 Higher earnings include a small FX gain versus a prior-year FX loss.
Net profit 126.6 104.3 Up 21.4%; this is cumulative nine-month profit, not Q3-only profit.
Operating cash flow 200.5 187.2 Up 7.1%; cash flow grew more slowly than revenue.
Cash paid for property and equipment 72.3 69.0 Continued capital spending absorbs part of operating cash generation.
Dividends paid 123.9 136.4 A substantial shareholder distribution limits cash retention.
Cash and cash equivalents 713.7 at September 2026 718.5 at December 2025 A material cushion, subject to other uses and obligations.

The earnings increase was supported by a US$24.9 million rise in gross profit. Revenue growth of US$33.3 million exceeded the US$8.4 million increase in cost of sales and revenue. The statements also report a US$0.3 million foreign-exchange gain against a US$10.2 million loss in the comparable period. That swing is relevant when assessing the increase in pre-tax profit: a favourable currency contribution should not be assumed to recur. Finance income declined to US$19.1 million from US$22.0 million, while interest and finance costs were US$22.5 million, broadly comparable with US$22.9 million a year earlier.

Operating cash flow of US$200.5 million exceeded net profit, which supports the view that the reported earnings improvement was accompanied by cash generation. It included US$20.7 million of interest receipts and US$49.1 million of corporate income tax paid. For comparison, the prior-year operating cash flow of US$187.2 million included US$23.6 million of interest receipts and US$33.1 million of tax payments. The rise in cash flow is therefore not simply an increase in customer receipts available without other claims: customer receipts, supplier payments and tax all affect the outcome. The statements do not provide a complete attribution of the year-on-year movement to generation volumes, tariffs or collection timing, so the report does not assign the improvement to any one of them.

PGE's contracts with PLN and PLN Indonesia Power provide an important background for revenue visibility. They do not remove exposure to geothermal resource performance, outages, counterparties or contract-specific payment terms. The new financial statements should be read as evidence of stronger aggregate reported results, not as proof that every plant, well or payment arrangement improved. The previous six-month presentation reported growth in production; the nine-month financial statements alone do not establish a comparable nine-month production bridge.

Collection timing deserves particular attention. Related-party trade receivables increased to US$157.7 million at September from US$122.8 million at December 2025. Separately, the receivables ageing disclosure reports gross trade receivables overdue by one to 90 days of US$156.3 million, compared with US$121.3 million at year-end. These are different presentations and should not be added together or assumed to describe exactly the same receivables. The figures do not establish a default, impairment or the cause of the increase. They do show that a meaningful amount of cash remains tied up in receivables; payment terms, later collections and ageing should be checked before treating revenue growth as fully realised liquidity.

3. Cash Retention and the 2028 Bond

The nine-month cash-flow statement shows US$200.5 million of operating inflow, US$72.3 million paid to acquire property and equipment, and US$123.9 million in dividends. Operating cash flow less those two specific cash uses was approximately US$4.2 million. This is a simple arithmetic comparison, not the company's reported free cash flow or a complete measure of cash available to bondholders. Other investing and financing items, debt service, lease payments, interest classification and exchange movements also matter. Including all reported cash flows, the period's net decrease before exchange effects was US$12.4 million; a US$7.6 million exchange effect led to ending cash of US$713.7 million.

The subsequent increase from US$656.6 million at the June interim date to US$713.7 million at September is constructive, particularly because the US$123.9 million dividend was already included in the nine-month total. It does not imply an equivalent increase in freely distributable or immediately deployable cash at every group entity. The financial statements' consolidated cash balance should be evaluated alongside any restricted cash, the location of funds and all current obligations before drawing an instrument-level liquidity conclusion.

The existing US$400 million 5.15% bond due 27 April 2028 remains the principal identified capital-market maturity in current coverage. Its face amount is about 56% of September consolidated cash, a useful scale comparison but not a repayment-coverage ratio. PGE must also fund ordinary operations, debt and lease service, possible distributions and its geothermal pipeline. The reviewed nine-month statements do not identify a dedicated cash reserve, a committed refinancing instrument or a confirmed redemption strategy for the 2028 notes. A decision to retain cash, distribute earnings or accelerate investment could therefore materially affect the eventual financing requirement even if present cash appears ample.

The earlier Green Book disclosure identified a possible concessional financing route for Lumut Balai Units 3–4 and Lahendong Units 7–8. That earlier route remains development context, not evidence from this event that loans have been executed or drawn. The timing, conditions, currency, sponsor-equity requirement and economics of individual projects remain important to the bond assessment. Similarly, the prior support-linked rating context is not a new rating action in these statements. Expected support and explicit legal recourse remain separate questions for the individual bond documents.

4. What To Watch Next

5. Sources