PGN reports sharp drop in net profit

Petromindo|Lucky

IDX-listed gas distribution company PT PGN Tbk saw net profit in the first nine months of this year dropped by about 60 percent to US$97.9 million from $241.99 million in the January-September period of last year.

The company said in a statement on Monday that revenue reached $2.16 billion, relatively flat compared to $2.15 billion.

PGN attributed the weaker financial performance to the country?s slowing economic growth, which affected gas demand. The company since the past year has also been undermined by the government?s move to lower gas price for industry consumers.

?We made various efficiency measures so that we?re able to make profit amid weaker economic condition,? PGN Corporate Secretary Rachmat Hutama said in the statement.

During the January-September 2017 period, PGN distributed 1,502 mmscfd of gas, lower than 1,595 mmscfd in the corresponding period of last year. The company currently operates a combined 7,450 km of gas pipelines, accounting for 80 percent of total gas pipelines in the country.

Editing by Reiner Simanjuntak