TBS Energi Utama Announces Share Buyback Program

Strategic Capital Management Initiative

PT TBS Energi Utama Tbk (TOBA), listed on the Indonesia Stock Exchange, has announced plans to implement a significant share buyback program. The company intends to repurchase up to 825.74 million shares, representing 10% of its total issued and paid-up capital.

Key Details of the Buyback Program

The buyback program is scheduled to commence on December 25, 2025 and will continue until March 24, 2026, spanning a period of three months. This strategic move is designed to achieve several key objectives: maintaining investor confidence, providing flexibility in capital structure management, enhancing long-term shareholder value, and stabilizing the company's stock price during periods of market uncertainty.

Rationale Behind the Buyback

The management of TBS Energi Utama has clearly articulated the rationale behind this significant capital allocation decision. By repurchasing its shares, the company aims to demonstrate its commitment to shareholder value creation while simultaneously providing itself with flexibility in managing its capital structure. This move is particularly noteworthy given the current market conditions, which the company describes as 'unfavorable'.

Market Implications

The announcement of this buyback program is expected to have a positive impact on market perception of TOBA's stock. By investing in its own shares, the company is signaling confidence in its intrinsic value and potentially supporting the stock price during a period when market conditions are challenging. The buyback represents a significant commitment, both in terms of the number of shares and the percentage of total issued capital involved.