PGN?s Q1 net profit drops by more than 33%

IDX-listed gas distribution firm PT PGN Tbk reported that net profit in the first quarter of this year dropped by 33.4 percent compared to the same period of last year on rising costs.

The state-controlled firm said in a statement Friday that net profit fell to US$176.7 million in the January to March period of this year from $265.3 million in the same period of last year,

While revenue rose by 15.1 percent to $841.6 million, cost of revenue jumped by 35.3 percent to $502 million from $371 million.

The higher revenue was attributed to a more than 5 percent increase in the company?s gas distribution volume. PGN distributed 875.7 million metric standard cubic feet per day (mmscfd) of natural gas during the first quarter, thanks to higher gas supplies particularly from the Corridor block field.

Meanwhile, in the gas transmission business, PGN and its subsidiary PT Transportasi Gas Indonesia transferred 834.24 mmscfd of gas during the first quarter from 876.83 mmscfd in the same period of last year. PGN said that although the company has started gas transmission from Medco Lematang to PLN?s power plant since early 2014, lower absorption by the offtaker had caused the lower transmission volume.

The company?s upstream subsidiary PT Saka Energi Indonesia raked in $67.2 million in revenue, according to the statement. Saka Energi expanded its upstream assets during the first quarter.

PNG completed bonds sale on May 16, raising $1.35 billion to help finance working capital and expansion programs including its gas distribution and transmission pipeline network.

Editing by Reiner Simanjuntak