PGN expects net profit of about Rp 450 billion this year

State owned gas distribution company Perusahaan Gas Negara (PGN) expects that it will book a total revenue of about Rp 3.5 trillion, before-tax profit of Rp 1.6 trillion and net profit of about Rp 450 billion this year, Kompas reported on Wednesday.

The company?s finance director Djoko Pramono said in Jakarta on Tuesday that the total revenue was expected to increase by 10 percent next year thanks to the projected increase in the gas sales by between 50-60 million cubic feet per day from about 250 cubic feet per day at present.

Djoko said that the company?s revenue would continue to increase next year in line with the commencement of several gas distribution such as those to Muara Karang, North Jakarta and also due to the full implementation of the gas distribution to Singapore.

According to him, the gas distribution to Singapore, which started to give contribution to the company?s revenue only three months ago, is expected to contribute a lot next year to the company?s balance sheet.

He said that gas distribution to Singapore was projected to increase to 150 million cubic feet per day in 2004 and to about 250 million cubic feet per day in 2006.

?In addition, the gas distribution to Batam will also increase to between 20 and 30 million cubic feet while those to Pekanbaru would reach between 10 and 20 million cubic feet,? he added.

PGN also planned to carry out massive expansion on its distribution network next year that would include the construction of the first phase of its South Sumatra-Java gas pipeline project. The expansion plan requires new investment totaling US$1.2 billion. (*)