PGN’s net profit more than tripled in 1H of 2005

The net profit of state-gas utility PT Perusahaan Gas Negara Tbk. (PGN) during the first semester of 2005 jumped to Rp 346.76 billion, compared to Rp 111.48 billion during the same period a year ago, the Investor Daily Indonesia newspaper reported in its Wednesday edition.

PGN’s director of finance Djoko Pramono said the record increase was due to the sharp decline in the losses suffered from the rupiah’s exchange rate against the U.S. dollar. The losses during the first semester 2005 from the exchange rate dropped to Rp 79.74 billion from Rp 291.62 billion during the same period in 2004. It means the drop was Rp 211.87 billion.

“This happened because rupiah was weaker in the first semester 2005 in compared to the last year,” Djoko said.

Company’s pre-tax profit also jumped 43 percent to Rp 720.90 billion from Rp 504.13 billion. The company’s financial statement, which was revised by the public accountant Ernst & Young, also recorded a big jump in income, which surged to Rp 2.53 trillion from Rp 2.11 trillion. This increase of Rp 430 billion was from the higher sales and the 4 percent price increase in case of industrial consumers.

Djoko is optimistic about his company’s prospects in 2005 in compared to 2004. His optimism was based on the rising gas demand and higher fuel prices, which raised the possibility of increasing gas prices.(*)