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PGN’s net profit plummets by 52.9 percent in 2017
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Two workers of state-owned gas company Perusahaan Gas Negara (PGN) check gas networks owned by PT Indonesia Power in Tambak Lorok, Semarang, Central Java. (JP/Suherdjoko)
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tate-owned gas distributor PT Perusahaan Gas Negara (PGN) saw its net profit fall by around 52.9 percent annually to US$143.1 million in 2017 amid weak gas demand.
PGN’s net revenue climbed by only 1.2 percent year-on-year to $2.97 billion last year, of which 80.9 percent came from its gas distribution business.
Meanwhile, its operating income fell by 15.1 percent to $377.01 million following a 7.6 percent increase in its distribution and transmission expenses and an 85.07 percent increase in other expenses. Subsequently, PGN’s net profit was dragged down.
“We conducted various efficiency measures so that we were still able to record a profit despite the sluggish economy,” PGN corporate secretary Rachmat Hutama said Friday.
Throughout 2017, PGN distributed 771.55 million standard cubic feet per day (mmscfd) and transmitted 83.95 mmscfd of gas, down 3.9 percent and 89.45 percent, respectively.
By the end of last December, PGN operated gas transmission and distribution pipelines spanning more than 7,450 kilometers, or about 80 percent of the country’s overall downstream gas pipelines.
In July last year, PGN squared syndicated loans worth $650 million it received from five different financial institutions in 2014, two years ahead of their maturity date of 2019 after the firm decided to delay expansion plans following its declining financial performance.
The syndicated loans came from ANZ Banking Group, the Bank of Tokyo-Mitsubishi UFJ, Citigroup Global Markets Singapore, the Hongkong and Shanghai Banking Corporation and Sumitomo Mitsui Banking Corporation. (bbn)
