PGN reports slight decline in revenue, sharp drop in profit

By Romel S. Gurky

Petromindo|Lucky

IDX-listed gas distribution firm PT PGN Tbk booked a lower revenue in the first semester of this year due to weaker demand amid slower economic growth.

PGN said in a statement Thursday that net revenue in the January-June period of this year slightly declined to US$1.41 billion from $1.44 billion in the corresponding six months period of last year.

The company said that revenue from gas distribution reached $1.16 billion, and from oil and gas sales $212 million.

PGN said that net profit in the first semester of this year was $50 million. While it did not provide year-on-year comparative figure, it is a more than 67 percent drop from $152.45 million in the first half of last year reported by this portal. The company did not provide explanation for the net profit plunge.

The company said it was particularly facing tough challenges this year, not only due to weaker demand from industries due to slower growth in global and local economy, but also amid government pressure for the company to lower gas price for end consumers to help improve competitiveness of domestic manufacturing industries.

During the first six months of this year, PGN managed a total of 1.470 mmscfd of gas volume, comprising of 721 mmscfd of transmission gas volume and 749 distribution gas volume.

In the first semester of this year, PGN managed to complete construction of 59 km of gas pipelines, expanding its total gas pipelines to 7,337 km, or about 80 percent of total gas pipelines in the country. PGN said the company will continue to develop more pipelines going forward.

Editing by Reiner Simanjuntak