VALUATION ANALYSIS ON PT PERTAMINA HULU ENERGI FOR THE INITIAL PUBLIC OFFERING

• Main Author: Fiscienthar, Yorend
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71868
• Institution: Institut Teknologi Bandung

The Covid-19 pandemic had an adverse significant impact for all countries worldwide, significantly impacting each country's economic growth. Restricting outdoor activities to reduce the number of people exposed to Covid-19 has caused many industries to experience a decrease in productivity. One of the most affected industries is the oil and gas industry, wherein in 2020, the amount of oil and gas consumption decreased drastically due to disruptions to outdoor activities. According to data, most oil and gas consumption is intended for transportation. Meanwhile, 2021 is the start of an economic recovery, where oil and gas demand is starting to increase. This is a positive signal for the oil and gas industry. Oil and gas reports are predicted to continue to increase until 2045; this is an opportunity for the oil and gas industry to increase its production, including Pertamina Hulu Energi (PHE). Meanwhile, PHE is currently intensifying its projects to achieve the target of 1 million BOPD and 12 thousand MMSCFD in 2030, but to achieve these targets, PHE requires large amounts of funds to carry out oil and gas production activities. Most of the funds used by PHE come from internal funds and the parent company, but Pertamina also needs large funds to develop its other subsidiaries. So apart from using internal funds and loans from third parties, PHE in 2023 will seek funding sources by offering its shares to the public or an Initial Public Offering (IPO). This study aims to calculate the intrinsic value using the DCF method and determine whether PHE can go IPO. In this study, external analysis was also carried out using PEST analysis and Michael Five P analysis. In contrast, the internal analysis uses financial ratios, and then the two analyses will be used to make a SWOT analysis to consider building recommendations. PHE's intrinsic value is IDR 5,091/share. Based on the sensitivity test results, it is known that the intrinsic value of PHE is more sensitive to COGS, which makes the higher costs charged to COGS the smaller the profit earned. The ratio of equity value is 1.9 x greater than its total equity, indicating PHE's ability to conduct an IPO. This is also supported by external and internal analysis PHE has the opportunity to continue to develop its business lines. This is because demand is predicted to continue to increase, in addition to geopolitics, such as Russia's policy to cut oil and gas exports. Another biggest challenge is the need for large capital; because of that, IPO can be a source of capital for PHE.