State owned PT Perusahaan Gas Negara ( PGN ) reported a significant growth in profits last year, on the back of rising sales and higher prices.
The company, whose shares are traded on the Indonesia Stock Exchange ( IDX ) as PGAS, booked US$890.89 million in net profits last year, increasing by 30.8 percent compared to $680.8 million a year earlier.
The growing net profits were supported by a 16 percent rise in total revenues to Rp 2.58 billion in 2012 from $2.23 billion year-on-year.
“The company’s financial achievement was supported by a higher volume of gas sales to 807 mmscfd [million standard cubic feet per day] in 2012 from 795 mmscfd in 2011,” PGN said in a written statement.
PGN also said that it enjoyed higher gas transmission of 877 mmscfd in 2012 from 845 mmscfd a year earlier. The company also benefited from higher selling prices after the government approved gas price increases last year.
“In 2012, PGN’s purchasing price from suppliers rose 61 percent. PGN has in turn adjusted its selling price to customers 24 percent per mmbtu [million metric British thermal units] since Sept. 1, 2012,” the company said.
PGN’s operating profits stood at $1.02 billion in 2012, increasing by around 13 percent compared to $898.16 million in 2011.
The company’s financial report submitted to the IDX also showed that it enjoyed non-operating income, particularly on gains on change in fair value of derivatives of $65.1 million in 2012 from a loss in 2011 and gains on foreign exchange of $49.76 million in 2012 also compared to a loss in 2011.
PT Bahana Securities said that it would maintain the company’s earnings before tax at $1.1 billion this year, up around 10 percent from $1.02 billion in 2012, on the back of higher distribution volume particularly from East Java.
“We also forecast 2013 distribution volume to reach 860 mmscfd, which is about 5.5 percent growth year-on-year, transmission volumes of 885 mmscfd, about 3 percent up year-on-year. With the yen weakness, PGAS is likely to book more foreign exchange gains this year,” Bahana said in a note.
“Our achievement in 2012 and development of an integrated business model has strengthened PGN’s fundamentals to continue growing sustainably,” PGN president director Hendi Prio Santoso said in a written statement.
Hendi said that PGN continued to integrate its business in the upstream, infrastructure and downstream sectors to maintain high growth. PGN said that the company through its subsidiary PT Saka Energi Indonesia was exploring the possibility of investing in several potential gas blocks and in
non-conventional gas businesses.
Following its financial report, shares in PGAS rose 4.17 percent to close at Rp 5,000 ( 52 US cents ) on Friday compared to a day earlier.
PGN runs two main businesses — sales and transmission — in three areas: East Java, Jakarta and several parts of West Java province, and Sumatra. In sales, the company distributes and sells gas from gas suppliers to domestic and industrial users.
— JP/ Raras Cahyafitri