Issuer Flash: Star Energy Geothermal

Report date: 2026-09-07 Event date: 2026-07-30 Event title: 6M 2026 Financial Performance

Flash Conclusion

BREN's 30 July unaudited 6M2026 release is supportive of the operating and sponsor backdrop for Star Energy Geothermal: consolidated revenue rose 11.5% year on year to US$334mn, EBITDA rose 13.1% to US$293mn and net profit rose 29.0% to US$106mn. The release also says that the Wayang Windu retrofit completed in 1Q2026 and that Star Energy Geothermal's installed geothermal capacity is now 926MW. These results reinforce the prior view that the broader geothermal portfolio is operating reliably while BREN continues to state a brownfield expansion pipeline; project-level funding capacity and ranking remain unconfirmed.

They do not, however, change the bond-by-bond credit conclusion. STENGE is a market shorthand, not one legal borrower or one common repayment pool. The relevant repayment sources remain the Salak-Darajat restricted-group cash flow for the SEGSD 2029/2038 secured bonds and Wayang Windu contracted cash flow for the SEGWW 2033 secured notes. BREN's consolidated EBITDA, net debt-to-equity ratio and reported portfolio capacity are useful context, but are not evidence of current DSCR, DSRA/MMRA balances, distribution-test compliance, current principal or debt-service capacity at either note issuer.

Accordingly, the release is modestly positive operational context rather than a basis to upgrade either project-bond view. It is more consistent with stable execution for SEGSD and a supportive backdrop for SEGWW after the retrofit, while leaving SEGWW's single-site concentration, Unit 3 execution and thinner public DSCR reference points unresolved.

What the 6M2026 Release Shows

PT Barito Renewables Energy Tbk (BREN) reported its unaudited consolidated results for the six months ended 30 June 2026 on 30 July. The company attributed growth to higher electricity sales from its geothermal and wind portfolios and described geothermal operations as stable. EBITDA increased faster than revenue, lifting the reported EBITDA margin to 87.6% from 86.3% in 1H2025; the company also cited lower financing costs as support for the increase in net profit.

BREN also stated that Salak Unit 7, Wayang Windu Unit 3 and the Darajat Unit 3 retrofit remained on track and were expected to lift total geothermal capacity above 1GW by end-2026. This is a management update on an expansion pipeline, not confirmation of COD, actual capital spending, funding source, lender ranking or bond-document treatment. The release does not give a current project-by-project generation table or distinguish the cash flows of the legal issuers that service the project bonds.

Credit Read-Through for the Project Bonds

For SEGSD, the release is directionally consistent with the existing view of a diversified Salak-Darajat geothermal platform operating within a broader group that continues to report stable performance. The group-level information does not contradict the existing public context of long-term PLN/PGE-linked arrangements and two-site diversification. Yet it does not update the information that determines direct bondholder protection: restricted-group cash flow, actual DSCR, DSRA/MMRA, cash-trap and distribution restrictions, current amortisation balances, or any waiver or amendment. Investors should therefore not use BREN's US$293mn consolidated EBITDA as a substitute for SEGSD's debt-service test.

For SEGWW, the completed Wayang Windu retrofit is the closest part of the disclosure to the bond's operating scope and is a favourable execution datapoint. It follows the earlier 3M2026 update and supports the view that the existing asset optimisation programme has progressed. It nevertheless does not establish the output contribution of the retrofit, actual post-retrofit DSCR, reserve-account status, or the funding and security ranking of the still-pending 30MW Unit 3 project. SEGWW remains exposed to a single-site repayment source; the prior public Fitch/Moody's references to a lower DSCR range than SEGSD cannot be assumed to have improved from this BREN announcement alone.

The distinction is material for bondholders. BREN also owns a wind business and has consolidated debt outside the project-bond legal scopes. A stronger parent or portfolio result can improve the perception of sponsor capacity and operating execution, but it does not automatically permit funds to move from BREN to a restricted project group, alter note security, replenish reserve accounts or cure a covenant breach. Conversely, no adverse issuer-specific development is reported in this release, but absence of a disclosure is not confirmation that those tests are satisfied.

The flash therefore retains the existing analytical hierarchy. SEGSD should be assessed primarily through the Salak-Darajat restricted-group contractual cash flow, reserve and covenant data; SEGWW through Wayang Windu cash flow, its single-site operating performance, the Unit 3 funding/subordination structure and its own reserve and covenant data. The 6M2026 BREN data improve neither legal segregation nor direct documentation transparency, so they do not support a relative-value conclusion without current prices, yields, WAL, spreads and liquidity.

What To Watch Next

The next priority is issuer-specific evidence rather than another extrapolation from consolidated earnings. For both SEGSD and SEGWW, obtain the latest compliance certificates or trustee materials confirming DSCR calculations, DSRA/MMRA and major-maintenance reserve balances, distribution restrictions, current principal and any waiver or amendment. Those materials would determine whether the stable operating backdrop is reaching bondholders through the contractual waterfall.

For the expansion programme, monitor site-specific construction progress, COD, drilling/resource results, capex and funding. In particular, the credit relevance of Wayang Windu Unit 3 depends on whether incremental debt or shareholder funding is structurally subordinated to the existing SEGWW notes and on the project-level effect on DSCR. Salak Unit 7 and the Darajat Unit 3 retrofit should likewise be allocated to SEGSD only after their restricted-group funding and cash-flow treatment is confirmed.

Finally, monitor PLN/PGE payment and contract developments, official rating actions and bond-market information separately for the two project-bond scopes. The current disclosure neither provides project-level payment history nor current market levels; those remain unconfirmed rather than negative findings.

Unverified / Pending

• Current SEGSD and SEGWW DSCR, DSRA, MMRA, major-maintenance reserves, distribution-test results, cash-trap status, current principal and any waiver or amendment.
• Project-level generation, cash flow, construction cost, financing source and debt-ranking treatment for Salak Unit 7, Wayang Windu Unit 3 and the Darajat Unit 3 retrofit.
• Current PLN/PGE payment and contract-amendment status, official full rating reports, and market prices, yields, spreads, WAL and liquidity for each bond scope.

Sources

1. PT Barito Renewables Energy Tbk, "6M-2026 Financial Performance Results", official press release dated 30 July 2026.
   https://www.baritorenewables.co.id/en/press-release/6m-2026-financial-performance-results

2. Star Energy Geothermal issuer summary dated 16 May 2026 and 3M2026 issuer flash dated 21 May 2026. Used for legal-entity boundaries, existing public bond context and outstanding-information limitations.

3. Star Energy Geothermal Salak-Darajat Annual Green Bond Report 2025 and Wayang Windu Annual Green Bond Report 2025. Used only as prior asset and bond-scope context; neither is a current compliance certificate.