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Star Energy Geothermal issuer flash: BREN 3M2026 financial performance

Star Energy Geothermal issuer flash: BREN 3M2026 financial performance

Report date: 2026-05-21 Event date: 2026-05-04 Event title: 3M 2026 Financial Performance

Flash Conclusion

BREN's March 2026 disclosure is modestly positive evidence for Star Energy Geothermal's sponsor and business backdrop. Consolidated revenue, EBITDA, and profit all increased year on year, and geothermal capacity rose to 926MW following completion of the Wayang Windu retrofit.

That said, the credit view in the latest issuer_summary is not materially changed. BREN's consolidated EBITDA of US$145mn and D/E of 2.23x are useful supporting information for assessing the parent group's operating capability, funding backdrop, and geothermal portfolio stability, but they are not the direct repayment sources for the SEGSD and SEGWW bonds. The repayment source for the SEGSD bonds is the Salak-Darajat restricted group, while the repayment source for the SEGWW bonds is Wayang Windu's contracted cash flow.

The conclusion is: “solid backdrop, unchanged bond-by-bond view.” SEGSD remains a low investment-grade credit with a stable bias. SEGWW is moving in an improving direction, but rating improvement should not be anticipated before confirming Unit 3, subordinated funding, actual DSCR performance, DSRA/MMRA, and distribution restrictions.

What Was Announced

BREN announced its 3M2026 financial performance on its official website, dated 4 May 2026. The dateline in the release itself is Jakarta, 30 April 2026. The company reported a solid start, supported by stable geothermal power generation, improved wind power performance, cost management, and lower finance costs.

Metric 3M2026 3M2025 / FY2025 comparison Change Credit interpretation
Revenue US$165mn US$150mn +9.8% YoY Revenue increased on stable geothermal and improved wind performance. This is not bond-specific DSCR
EBITDA US$145mn US$130mn +11.4% YoY EBITDA margin was 87.6%. Profitability remains high
Net profit US$53mn US$42mn +24.0% YoY Lower finance costs contributed
Total debt US$2.089bn US$2.086bn FY2025 +0.1% Consolidated debt was broadly flat
D/E 2.23x 2.36x FY2025 Improved Consolidated capital structure improved slightly

On the operating side, the Wayang Windu retrofit was completed in 1Q2026, increasing BREN's geothermal installed capacity to 926MW. The company is continuing to advance Salak Unit 7, Wayang Windu Unit 3, and the Darajat Unit 3 retrofit, and maintains its plan to lift geothermal capacity to more than 1,000MW by end-2026.

BREN's unaudited consolidated financial statements show 3M2026 profit before tax by JOC segment of US$41.4mn for Salak, US$24.4mn for Darajat, and US$36.0mn for Wayang Windu. The borrowings note also shows consolidated senior secured notes outstanding as of end-March 2026 of US$172.0mn for the SSN 2029, US$790.0mn for the SSN 2038, and US$369.8mn for the SSN 2033. These are useful figures, but they are not issuer-specific compliance certificates or DSCR calculations.

Credit Read-Through

The most important point in this disclosure is that it reconfirms that the stability of the geothermal business supports consolidated performance. BREN's high EBITDA margin is consistent with the existing credit story of long-term contracts with PLN/PGE and stable operations.

At the same time, a strong consolidated BREN profile is not the same as the SEGSD and SEGWW bonds having the same strength. BREN also includes the wind power business and borrowings at the parent and intermediate holding company levels. For project bond investors, the central focus should be issuer-specific cash, DSCR, reserve accounts, distribution restrictions, and additional debt restrictions within each bond scope.

For SEGSD, the read-through is closer to confirmation of stability. Salak and Darajat continued to generate substantial profit in the 3M2026 segment disclosure, and there is no evidence that contradicts the existing view based on two-site diversification, multiple units, and the 2.42x rating-case average DSCR cited in the Fitch republication. However, the construction, funding burden, and reserve usage related to Salak Unit 7 and the Darajat Unit 3 retrofit remain items to confirm.

For SEGWW, the read-through is modestly positive but conditional. Completion of the Wayang Windu retrofit indicates that part of the capacity expansion plan emphasised by Fitch and Moody's has been executed. Still, the constraints on SEGWW are the unfinished Unit 3, single-site exposure, DSCR in the 1.30-1.40x range, subordination of additional funding, and well, resource, and maintenance costs. It is premature to treat SEGWW as approaching SEGSD's credit profile based on retrofit completion alone.

From an investment perspective, SEGSD remains a low investment-grade project bond to hold or consider while monitoring the PLN/PGE contracts, two-site diversification, DSCR headroom, reserves, and amortising structure. SEGWW remains an improving BB/Ba3 credit, where retrofit completion is positive, but a high risk premium is still required until Unit 3 and DSCR improvement are confirmed. Price, yield, spread, WAL, and liquidity remain unconfirmed in this flash, so no relative value judgment is made.

What To Watch Next

First, confirm the latest compliance certificates for SEGSD and SEGWW. The necessary figures are issuer-specific DSCR, DSRA, MMRA, distribution restrictions, cash trap, and major maintenance reserve. For SEGWW in particular, DSCR headroom is thinner than for SEGSD, making post-retrofit actual performance important.

Second, monitor progress on Wayang Windu Unit 3 and Salak Unit 7. BREN targets more than 1,000MW by end-2026, but COD delays, cost overruns, well and resource assessment, and the subordination of bank loans and shareholder loans will affect risk at the bond-specific level.

Third, check payment and contract status with PLN/PGE, government audit findings related to the JOCs, and market data. For PGE/JOC-type geothermal credits, audits, government interests, production allowance, and tariff interpretation can affect long-term cash flow. Price, yield, G-spread, Z-spread, WAL, and liquidity are unconfirmed in this flash.

Sources

  1. PT Barito Renewables Energy Tbk, "3M-2026 Financial Performance Results", press release dated 2026-05-04.
    https://www.baritorenewables.co.id/en/press-release/3m-2026-financial-performance-results

  2. PT Barito Renewables Energy Tbk and subsidiaries, 3M-2026 BREN Consolidated Financial Report, interim consolidated financial statements as of 31 March 2026, unaudited.
    https://www.baritorenewables.co.id/en/financial-report

  3. Star Energy Geothermal, Salak-Darajat Annual Green Bond Report 2025, September 2025.
    https://www.starenergygeothermal.co.id/wp-content/uploads/2025/09/Salak-Darajat-Annual-Green-Bond-Report-2025.pdf

  4. Star Energy Geothermal, Wayang Windu Annual Green Bond Report 2025, September 2025.
    https://www.starenergygeothermal.co.id/wp-content/uploads/2025/09/Wayang-Windu-Annual-Green-Bond-Report-2025.pdf

  5. Petromindo republication of Fitch Ratings, "Fitch Upgrades Star Energy Geothermal Wayang Windu's Notes to 'BB'; Outlook Stable", 2025-09-30.
    https://www.petromindo.com/news/article/fitch-upgrades-star-energy-geothermal-wayang-windu-s-notes-to-bb-outlook-stable

  6. Petromindo republication of Moody's Ratings, "Moody's Ratings affirms Star Energy Geothermal (Wayang Windu) Limited's Ba3 rating; changes outlook to positive", 2025-07-23.
    https://www.petromindo.com/news/article/moody-s-ratings-affirms-star-energy-geothermal-wayang-windu-limited-s-ba3-rating-changes-outlook-to-positive

Unverified / Pending