PGN?s net profit drops 21%

IDX-listed gas distribution company PT PGN Tbk reported Monday that net profit in the first nine months of this year reached US$241.99 million, a 21 percent drop compared to $306.32 million in the corresponding period of last year.

PGN said in a statement that net revenue in the January-September period of this year increased slightly to $2.16 billion from $2.14 billion, thanks primarily to the operation of the Kalija 1 gas pipeline operated by PT Kalimantan Jawa Gas, and gas sales in the upstream side by subsidiary PT Saka Energi Indonesia.

The company?s profitability has been undermined by the weak economic growth, causing industries to cut down on gas purchase from PGN. Other challenges include the sharp drop in oil price, and the fluctuation in the exchange rate of the rupiah against the US dollar.

Elsewhere PGN said that operating profit in the nine-month period reached $294.2 million, while EBITDA increased to $641.51 million from $614.34 million.

?Through various efficiency measures, we managed to book profit amid the slowing economic condition,? said PGN Corporate Secretary Heri Yusup in the statement.

During the January-September period of this year, PGN distributed a total of 1,595 mmscfd of gas, up from 1,556 mmscfd in the corresponding period of last year.

PGN currently operates 7,267 km of gas pipelines, or accounting for 78 percent of the total gas pipelines in the country.

Editing by Reiner Simanjuntak