Pertagas books $54.6m in Q1 net profit

By Nova Farida

Petromindo

Gas distribution company PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm PT Pertamina, said net profit in the first quarter (Q1) of this year reached US$54.6 million, or 36.2 percent of full-year target of $150.24 million.

Pertagas President Director Toto Nugroho said on Wednesday that the profit was mainly generated from gas pipeline toll fee particularly the Arun-Belawan gas pipeline in North Sumatra, and the recently operated Muara Karang-Muara Tawar pipeline and Porong-Grati pipeline.

?This year, we?re also lucky that LPG price was quite high, so the contribution of Perta-Samtan Gas was quite large,? he told Petromindo.co on Wednesday, referring to its 66 percent-owned joint venture company which operates an LPG plant in South Sumatra.

According to Toto, this year?s net profit target of $150.24 million is lower than realized profit of $159.07 million last year, and $151.08 million in 2015. He said that the main factor contributing to the lower profit target this year is the government?s policy of limiting gas price at certain range including the toll fee. He pointed out that a new Minister of Energy and Mineral Resources Regulation No 434.k/12/MEM/2017, which was issued on February 13, 2017 on gas price for industries in Medan (North Sumatra Province) and surrounding areas affected its business as toll fee of the Arun-Belawan pipleine has been reduced from $2.53 per mmbtu to $1.8 per mmbtu.

Editing by Reiner Simanjuntak