Investor FAQs

What is the SEP ticker symbol and on what exchange are the shares traded?

The SEP ticker symbol is ESSA as traded on the Indonesia Stock Exchange (IDX)

How many shares are currently outstanding?

SEP currently has 1,100,000,000 shares outstanding

What is LPG? What is it used for?

LPG, also known as Liquefied Petroleum Gas,  consists of Propane (C3H8)and Butane (C4H10) hydrocarbons. In areas where piped gas is unavailable, LPG is main source of energy for heating and/or cooking. LPG can be stored and transported as a liquid via shipping tankers, tank trucks and portable canisters. In Indonesia, the bulk of LPG is used for cooking.

What is Condensate?

Condensate is mixture of hydrocarbon liquids that can be extracted from natural gas, and can also be known as Light Naphtha  In the case of SEP, Condensate is primarily made up (mix)  of Pentane (C5H12), Hexane (C6H14)and Heptane (C7H16) hydrocarbons. Condensate can be used as a raw material towards further downstream processing of fuels and petrochemicals.

How does SEP sell its LPG & Condensate?

SEP sells LPG in bulk to PT Pertamina (Persero) that are transported through 8-15 ton tank trucks

Condensate is not sold but returned to Pertamina EP in lieu of a Handing Fee

At what price does SEP sell its LPG?

SEP’s LPG selling price is linked to Propane and Butane prices of CP Aramco, the global reference price for LPG. The price is adjusted as per the Propane and Butane composition.

How is SEP’s LPG selling price affected by global Crude Oil Prices?

There is a strong correlation between LPG and Crude Oil prices. However, in extreme circumstances, a delinking between LPG and Crude Oil price is evident as Suppy & Demand forces become a major factor in setting the LPG Price.

With a 50% increase in capacity, does SEP get sufficient gas to continue operations until 2022?

SEP’s 50% capacity increase has been achieved through more efficient technology rather than increased natural gas feedstock. The new technology application increases the extraction efficiency from 60% previously to 95% post-expansion. As such, SEP is confident that all its feedstock requirements until 2022 can be met.

Does SEP have any ambitions of growing capacity further?

We continue to explore opportunities whereby SEP can play a larger role in contributing to domestic LPG supply. These opportunities may arise at our present location or at other locations in Indonesia.

What is your view on Shale gas? How does this affect the dynamics of the gas industry in Indonesia?

Shale gas has dynamically changed the supply and demand dynamics of oil & gas around the world. The advent of Shale Gas is causing a long-term adjustment of global energy prices including LPG. However, due to the hydrocarbon composition of Shale Gas we do not expect there to be significant change to the LPG supply chain.

What is the current demand and supply situation of LPG in Indonesia?

LPG demand in 2014 was 6.2 million MT, of which 2.5 million MT was supplied domestically and 3.7 million MT was imported. Demand is expected to increase to 6.97 million MT in 2015 with imported LPG supplying 4.2 million MT. It is important to note that imported LPG has additional costs of transportation and a 5% import duty, making it significantly more expensive to buy than domestically produced LPG.

What is your guidance for 2015?

The Company doesn’t provide earnings guidance.

What is SEP’s Dividend Policy? Why hasn’t SEP issued a dividend over the last 3 years?

SEP will continue to prioritize funds for its project investments and capital expenditure. Should any surplus remain thereafter, the Company would look at issuing a dividend. Due to the large funding requirement of the Company’s expansion and investment into PT Panca Amara Utama, SEP has not issued a dividend for the past 3 years.

Why are SEP’s books in USD?

SEP’s revenue and major expenses are denominated in USD. Rupiah denominated expenses make up less than 10% of total expenses