PGN?s profit drops to $591m in Q3

IDX-listed state owned gas distribution firm PT Perusahaan Gas Negara (PGN) booked a net profit of US$591.8 million as of the third quarter of this year, representing a sharp drop from $641.6 million in the same period of last year, according to the firm?s interim financial report.

The firm ascribed the fall in profit to a higher purchasing cost of gas and lower foreign exchange gain.

Sales in the first nine months reached $2.5 million, up 14 percent from $2.2 billion in the same period of last year, while operating profit rose 10 percent to $769.7 million from $697.6 million. EBITDA reached $898.2 million in the September 2014 period, up 7 percent from $836 million, the firm said in a statement on Friday.

The rise in sales came a result of the rise of the firm?s gas distribution volume by 6.3 percent to 859 mmscfd from 808 mmscfd. Meanwhile, its subsidiary, PT Transportasi Gas Indonesia, booked a gas transmission volume of 864 mmscfd, down from 867 mmscfd in the same period of last year.

The firm said the rise in its purchasing price of gas starting on April 1, 2013 has resulted in the increase in the firm?s cost of operating revenue as of third quarter of this year by 22 percent to $1.4 billion from $1.2 billion.

The strengthening of the dollar in the nine-months period has affected the firm?s financial obligation in yen. During the period, foreign exchange non-cash (net) gain reached $15.8 million, down from $58.1 million.

Editing by Johannes Simbolon