PGN sees profit up during Q1

State gas distributor PT Perusahaan Gas Negara Tbk (PGN) saw its gross profit increased to US$ 359.39 million during the first quarter of this year, as compared to US$ 359.23 million at the same period last year.

In its consolidated financial statement announced on Wednesday, the company reported that its operating profit reached US$ 272.4 million during the first quarter. Its revenue increased by 25 percent from US$583.2 million to US$731.1 million.

Meanwhile, the company also generated EBITDA of US$ 314.5 million from US$ 331.6 million and also generated income attributable to owners of entity to the amount of US$ 265.3 million from US$ 275.9 million for the period of three-month of 2013 and 2012 respectively.

The performance resulted from the sales of 833 MMSCF per day which came mostly from industrial sector both the electricity and non-electricity while small portion came from commercial and household customers.

The transmission business, mainly operated by PT Transportasi Gas Indonesia (TGI), PGN?s subsidiary, transported 877 MMSCF per day to customers in Sumatera, Jakarta, West Java and Singapore.

Compare to the same period in 2012, the volume transported by TGI decreased due to declining transmission volume from Jambi Merang field to power plant in Muara Tawar and declining consumption by PLN Batam.

The increase of purchase price from suppliers since September 2012 impacted the company?s cost of revenues by 66 percent for the three-month period 2013. Increase in feedstock price is in line with the government?s policy in its effort to stimulate gas production for domestic consumption.

Following the Minister of Energy and Mineral Resources? letter regarding an integrated natural gas price adjustment between PGN and its suppliers, gas price adjustments have been implemented on 1st September 2012 and 1st April 2013.

To improve its distribution business, PGN continuously looks for additional supply from gas sources including gas from re-gasified LNG in the country. Gas supplies from Terang Sirasun Batur field have helped the fulfilment of gas demand in East Java while some portion of re-gasified LNG from FSRU West Java, operated by PT Nusantara Regas (joint venture of PGN and Pertamina) have been distibuted through PGN?s subsidiary, PT Gagas Energi Indonesia (GEI).

GEI has also provided gas in the form of Compressed Natural Gas (CNG) for industry and transportation.

In its midstream business, PGN is building the second FSRU in Lampung. On 27th February 2013, the vessel which is under construction has progressed to keel laying stage at Hyundai Heavy Industry?s shipyard in Ulsan, South Korea. FSRU construction is expected to be completed at the end of 2014.

Editing by Benget Besalicto Tnb