PGN's profit triples on higher fees

State-controlled gas distributor PT Perusahaan Gas Negara said first-quarter profit more than tripled on higher transmission fees. Shares rose to a record. The Jakarta Post reported on Thursday.

PGN?s net income in the three months ended March 31 increased to Rp 693 billion (US$78 million) from Rp 197.5 billion, the company said in an e-mail statement. Sales rose 42 percent to Rp 1.7 trillion, it said.

PGN raised prices for industrial users in Sumatra and West Java by 10 percent to $5 per million British thermal unit (MMBTU) on Jan 1, following another rate increase for all units by 15 percent on Oct. 15.

PGN, however, postponed raising price to $5 per MMBTU in East Java from January to August. The company also reduced supply to industrial customers in the area because of declining input from gas fields.

An additional natural gas supply of 100 million standard cubic feet a day to the area is expected to come starting August from fields operated by Santos Ltd, the company said.

PGN forecasts profit may rise at least 25 percent this year because of increased supply under a contract with Santos, President Director W.M.P. Simandjuntak said on April 3. (*)