4Q17 Performance Review
ELSA posted the leap of 51.1% y-y into IDR1.65 trillion in revenue backed by the hike in all its business segments respectively posting topping 46% growth. The high growth in revenue continued the acceleration trend starting from 2Q17 and 3Q17 when it respectively posted the growth of 29.3% and 63.7%. Besides, it also succeeded to post the net profit of IDR162 billion (+9.7% y-y).

Growth Stemming from Pertamina
The picking up in oil prices has re-spurred the activity of oil and gas exploration in Indonesia. We project that Pertamina (state-owned oil and gas enterprise) upstream activity will be more active along with the large number of oil and gas blocks in Indonesia of which contracts will have terminated in 2018.

The opportune backdrop will allow Pertamina to obtain more contracts for managing oil and gas blocks, and have positive impact on ELSA, the subsidiary of Pertamina—to enjoy the fantastic growth in 2018. We estimate that in 2018, ELSA will post the stable growth in each of quarters. This uptrend of 2018’s growth is in contrast to 2017’s growth.


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