PGN to pay dividend worth Rp 1 trillion

Shareholders of state-owned gas distribution company PT Perusahaan Gas Negara (PGN) agreed during an annual shareholders meeting on Tuesday a proposal to pay dividends worth Rp 1 trillion (1 US$ = Rp 10,350) or Rp 41.47 per share.

As the total dividends would exceed the company?s 2008 net profit of Rp 633.86 billion, the company would use part of its retained earning to fill the dividend gap which will reach about Rp 366.14 billion.

PGN president director Hendi Prio Sentoso said that the management initially proposed dividend payment of Rp 316.93 billion or a half of the total net profit. ?But the government, as the majority shareholder, proposed the dividend payment of Rp 1 trillion,? he said.

Hendi said that the company would use part of the retained earning which reached a total of Rp 2.7 trillion at the end of 2008 to pay the shortage.

He said the use of the retained earning for the dividend payment would not affect the company?s working program because there was a commitment from Bank for International Cooperation and World Bank to provide loan worth up to US$100 million to the company.

PGN said earlier that it would use its total retained earnings of Rp 2.7 trillion to finance the capital expenditure for 2009 which would reach about Rp 2.6 trillion. ?With bank loans, the company will have no problem to finance the capital expenditure,? he said. (godang)