PGN Sees 34% Fall in Q1 Profit On Rising Costs
Jakarta. Perusahaan Gas Negara, a state gas distributor, posted a 33.5 percent drop in first quarter profit on rising costs.
Net income at the Jakarta-based company fell to $176.7 million in the January to March period this year from $265 million a year earlier, while revenue increased 15.1 percent to $841.6 million, the company said in a press statement on Friday.
However, the state gas firm, or PGN, saw its cost of revenue rising 35.3 percent to $502 million from $371 million.
PGN distributed 875.7 million metric standard cubic feet per day (mmscfd) of natural gas, a 5.07 percent increase, through its distribution business, in line with a rise in gas supply at the company's blocks. The company, which started its upstream business through its unit Saka Energi Indonesia, raked in $67.2 million from its oil and gas sales, according to the statement.
After earning $1.35 billion in a bond sale on May 16, the company plans to set aside Rp 15 trillion for various investments. Of that figure, $200 million will be used to expand its existing 3,800 kilometer gas distribution pipeline and 2,160 kilometer transmission pipeline network throughout the country.
PGN said in January that it was in the process of completing a 30-kilometer gas pipeline in Banten, which will be able to transport 216 mmscfd. The project is part of the state firm's plan to build a 1,111-kilometer gas pipeline connecting South Sumatra to West Java. This mega project was first announced in 2005 and is estimated to cost more than $1 billion.
PGN had steadily expanded its presence in the upstream business in order to source its natural gas supplies directly.
Through Saka Energi Indonesia, the company announced early in May that it would pay $175 million for a 36 percent stake in a shale gas operation in Texas to New York-listed Swift Energy.
Last year, the company spent some $945 million for control of Pangkah Block, located off the coast of East Java, in two separate deals. It also bought a 20 percent interest in Kepatang Block for $71 million.
Posted by: "Sunny" <ambon@tele2.se>
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