PGN reports lower net profit
Friday, March 6 2015 - 12:53 AM WIB
Despite higher revenue, IDX-listed gas distribution company PT PGN Tbk reported a lower net profit for 2014 due to rising cost and global oil price drop.
PGN said on Thursday that net profit last year was US$722.75 million. While the company did not provide comparative figure, based on previous report, this was an 11.3 percent decline from $804.45 million in the previous year.
The company said that net revenue increased by 13.6 percent to $3.41 billion compared to $3 billion in 2013.
The higher revenue was contributed by a 5 percent rise in sales volume at its gas distribution business to 865 mmscfd; and higher revenue as well as oil and gas production at upstream subsidiary PT Saka Energi Indonesia. Its gas transmission unit PT Transportation Gas Indonesia channeled 852mmscfd of gas last year from 854 mmscfd in the previous year.
The company, however, said that cost of revenue jumped by 22.7 percent last year to $1.94 billion due to higher cost burden of oil and gas operation, LNG purchase, higher purchase price of gas from producers, and cost burden from the operation of floating storage and regasification unit (FSRU).
PGN said that the drop in global oil price has also affected its profitability particularly upstream subsidiary PT Saka Energi Indonesia, which saw its oil and gas asset value (non-cash) dropped by $34.66 million.
The company added that lower foreign exchange gain has also undermined its profit for last year.
Editing by Reiner Simanjuntak