Profit down 58%, National Gas Company (PGAS) depressed triple shock

ILLUSTRATION. Perusahaan Gas Negara (PGAS) posted revenues of US $ 2.15 billion in January-September 2020, down 23.49% on an annual basis.

Reporter: The first is blessed | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. PT Perusahaan Gas Negara Tbk (PGAS) aka PGN as the subholding gas of PT Pertamina (Persero) posted revenues of US $ 2.15 billion or around Rp. 31.51 trillion in January-September 2020 using the third quarter average middle exchange rate of Rp 14,647.

This revenue fell 23.49% when compared to the same period last year of US $ 2.81 billion. Most of the revenue this time comes from the operational performance of gas sales.

PGN’s Finance Director Arie Nobelta Kaban said that the financial performance in the third quarter was strongly influenced by the current economic condition, which has not yet recovered. First, The Covid-19 pandemic continues which has not been able to increase demand for natural gas. Second, world oil and gas prices have not increased significantly.

Third, the value of the rupiah exchange rate against the United States dollar (US) is still volatile. “Triple shock this affects PGN’s business, namely demand against natural gas, the upstream sector that depends on market especially oil and gas prices and LNG prices, “said Arie in a press release, Friday (27/11).

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Net profit of this state-owned company fell 58.72 percent to US $ 53.3 million from US $ 129.11 million in the same period last year.

Until the end of the year, PGN strives to increase revenue and continue to be accompanied by efficiency in terms of costs, so that at the end of the year it is expected that financial performance will be better. Arie said, the position of cash and cash equivalents as of September 30, 2020 was US $ 1.19 billion. This position is better than the position as of December 31, 2019, which was US $ 1.04 billion.

Likewise, the ability to fulfill their obligations, Arie claims to be still good, with current ratio as of 30 September 2020 amounted to 268%, higher than current ratio as of December 31, 2019, it was 197%.

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In the midst of performance pressures, PGN strives to maintain operational and financial performance, particularly in serving national natural gas needs. During the January-September 2020 period, PGN distributed natural gas with a distribution volume of 812 BBTUD, transmission volume of 1,276 MMSCfD, oil and gas lifting of 5,260 MBOE, oil transportation of 2,780 MBOE, processing of LPG of 34,206 TON, and regasification of 93 BBTUD.

In the midst of business challenges and a global and national economic slowdown, PGN seeks to optimize every opportunity available to strengthen the company’s business. Natural gas infrastructure development to reach new markets continues to be carried out in various regions.

PGN also engages subsidiaries and affiliates to provide integrated services that prioritize convenience for customers. Total PGN subscribers were recorded at more than 422,000 customers at the end of the period.

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PGN Corporate Secretary Rachmat Hutama added, PGAS will also continue to build and expand natural gas infrastructure in a sustainable manner. This is in line with the government’s efforts to improve the national economy in various business sectors and national economic recovery.

PGN has implemented the ESDM Ministerial Decree 89K / 2020 to distribute gas at a special price of US $ 6 per MMBTU to seven specific industrial sectors.

“We hope that the conditions will improve demand The seven special industrial sectors can be realized in an increasingly optimal absorption of natural gas until the end of the year according to the volume set by the Minister of Energy and Mineral Resources Decree 89.K / 2020. We have received confirmation that several specialized industrial sectors have expanded their production and even returned to exports and have had a significant impact on their financial performance, “added Rachmat.

Also Read: PGN: The gas price policy of US $ 6 per MMBTU is starting to have an impact on industrial recovery