PGN to suffer foreign exchange losses

The Jakarta Post ,  Jakarta   |  Mon, 07/13/2009 5:41 PM  |  Business

State gas distributor PT Perusahaan Gas Negara Tbk (PGN) is predicting back-to-back foreign exchange losses this year.

“The total currency exchange losses will not exceed the Rp 2,508 trillion we posted last year,” PGN corporate secretary Wahid Sutopo said Monday in Jakarta, but declined to give an exact figure.

To counter the anticipated losses, the company has appealed to the government to allow it to draft its annual report for this fiscal year based on the US dollar.

“We’re still waiting for the government’s decision, while we conduct a study on the possibility [of losses],” Wahid said.

PGN enjoyed solid growth last year, posting a 45 percent increase in revenue to Rp 12.7 trillion, up from Rp 8.8 trillion in 2007.

However, its net profit plunged 45.5 percent to Rp 633.8 billion in 2008, from Rp 1.16 trillion in 2007. The fall in the net profit was caused by foreign exchange losses, which soared to Rp 2.5 trillion in 2008 from Rp 504 billion in 2007. (naf)

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