PGN net profit narrows on lower revenues

PT Perusahaan Gas Negara Tbk (PGN), state gas distribution company, posted net profit of Rp4.51 trillion in the nine months to September 2011, down 3.84 percent, compared to Rp4.69 trillion in the same period last year.

The lower net profit was in line with lower revenues as the company distributed lower volume of gas. In the period, the company posted revenues of Rp14.20 trillion, down 4.5 percent compared to the same period last year of Rp14.58 trillion.

The lower revenues were driven by lower volume of gas distributed to customers. This was due to redirection of gas from Grissik field to Duri for oil production purpose since 2010 which still has an impact in 2011, the company said.

The company said lower net profit was also attributed to higher gas purchase price from renewable and new purchase contracts.

During the period, the volume of gas from transmission activities reached 844 MMSCFD, down from 853 MMSFD in the same period last year.

Meanwhile, the volume of gas distributed directly to consumers -- household, industry and power plants ? stood at 785 MMSCFD compared to 821 MMSCFD in the same period 2010.

Hendi Prio Santoso, President Director of PGN said the gas volume in the third quarter alone tended to increase although it still fluctuated.

?Going forward, we hope gas allocated to PGN will continue to increase, considering its positive impact in stimulating national economic activities,? he said.

?PGN is committed to support the increase of national gas production and distribution to meet domestic consumers? needs. However, the increase depends on cooperation between upstream sector, consistency of government policies and support from stakeholders towards the role and contribution provided by PGN,? he said. (giok)