PGEO management reveals the estimated dividend allocation to be distributed from the 2024 financial year.

JAKARTA – PT Pertamina Geothermal Energy Tbk (PGEO) has confirmed it will distribute dividends to shareholders for the 2024 financial year, despite a decline in share prices since the beginning of this year.

PGEO's Finance Director, Yurizki Rio, revealed that the Dividend Payout Ratio (DPR) for 2024 will be in the range of 80-90%. However, PGEO management is still calculating the funds allocation for dividend distribution.

“In previous years, we said the dividend ratio was 78%, this year we are considering a dividend payout ratio between 80-90%, depending on cash needs,” he told the media on Monday (10/3).

Yurizki added that PGEO has a strong cash flow position, with cash holdings of USD 657.6 million, while liabilities have decreased on an annual basis. In addition, the company still has IPO proceeds amounting to IDR 4.47 trillion, deposited at Bank Tabungan Negara and Bank Mandiri in the form of term deposits with the highest interest rate of 6.05%.

Although dividends will be distributed, PGEO is also allocating part of its cash for geothermal project development. “For this year, we will likely focus the funds on internal needs, particularly for the organic development of our projects,” Yurizki said.

In the first trading session today, PGEO's share price fell by 1.21% to IDR 815 per share as of 10.40 AM WIB. Over the last 5 trading days, its share price has dropped by 4.09%. (DK/KR/ZH)