PGN?s net profit drops as national economy declining
Tuesday, September 1 2015 - 01:15 AM WIB
The drop in the net revenue was caused by declining sales as result of the drop in the volume of gas transmitted and distributed to customers, the firm said in a statement, quoting its interim consolidated financial report.
In the first six months of the year, the firm booked $1.42 billion in sales, $289.88 million in operating profit, and $417.07 million in EBITDA. In comparison, according to the firm?s press statement last year, the firm booked $1.7 billion in sales, $518.08 million in operating profit, $603.18 million in EBITDA in the first half of last year.
In the first half of the year, the firm?s distribution volume reached 790 mmscfd, down from 866 mmscfd in the corresponding period of last year while the volume of gas transmitted by its subsidiary, PT Transportasi Gas Indonesia, fell to 752 mmscfd from 860 mmscfd. Besides, during the period, PGN as a holding company also transmitted 10 mmscfd during the first half of the year.
The drop in PGN?s net profit in the first semester is line with the decline in Indonesia?s macro economy and rupiah exchange rate. The decline in the national economy was impacting the performance of PGN?s customers in general, customers in the power and manufacturing industries in particular. The decline in their performances resulted in the decrease in their absorption of PNG?s gas, which in turn impacted PGN?s revenue and net profit, according to the firm.
?When our customers, particularly those in the power and manufacturing industries, were cutting their take of PGN?s gas, PGN felt the impacts on sales and profit. In view of the government?s efforts to strengthen the national economy, we are optimistic that going ahead, the condition will improve,? Corporate Secretary Hery Yusuf said.
Editing by Johannes Simbolon