Petrosea’s Strong Backlog and Gold Diversification Support PTRO’s 2026 Outlook
The business outlook for PT Petrosea Tbk (PTRO) in 2026 remains attractive as the company expands into the gold mining sector in Papua New Guinea through its investment in Tolu Minerals Limited.
PTRO completed its binding offer process with Tolu Minerals Limited on April 20, 2026. Through the transaction, Petrosea secured a convertible note worth AUD 23.75 million, creating opportunities for future operational cooperation in the gold mining industry.
KISI Sekuritas Head of Research, Muhammad Wafi, stated that the expansion could strengthen PTRO’s business diversification strategy, as the company has long been recognized as a major player in coal mining services.
“The 2026 outlook is quite promising. Profitability could improve significantly once new projects begin contributing,” Wafi told Kontan on Tuesday (May 12, 2026).
However, he noted that PTRO’s investment in Tolu Minerals is unlikely to contribute directly to revenue in the short term. The investment is still structured as a financial instrument that may later be converted into equity ownership or mining service contracts.
According to Wafi, PTRO’s main performance catalyst continues to come from its solid long-term contract backlog, which provides strong revenue visibility for the company over the next several years.
In addition, elevated global gold prices amid rising geopolitical tensions between the United States and Iran are also seen as a positive factor supporting PTRO’s gold diversification narrative.
“High global gold prices support PTRO’s gold diversification story, even though revenue from Tolu has not yet materialized in the near term,” he said.
Meanwhile, BRI Danareksa Sekuritas Fundamental Analyst Abida Massi Armand also highlighted several positive catalysts expected to support PTRO’s performance.
First, the company is expected to monetize its backlog from long-term contracts with Freeport Indonesia and Bara Prima Mandiri.
Second, PTRO is accelerating its engineering, procurement, construction, and installation (EPCI) segment through the integration of Hafar and Scan-Bilt, reflected in a US$9.5 million contract win from Petronas.
The company is also expanding internationally into Pakistan through an engineering, procurement, and construction (EPC) project with Reko Diq Mining Company.
Despite the positive outlook, PTRO still faces several risks that investors should monitor. Regulatory changes in Indonesia’s mining sector remain a major concern, particularly regarding potential reductions in RKAB approvals and higher taxes that could weaken interest in new mining projects.
Wafi also warned about additional risks, including high interest expenses and operational challenges in new regions such as Papua New Guinea.
For investment recommendations, Wafi maintained a “buy” rating on PTRO shares with a target price of Rp 8,000 per share.