PGN Gains Rp1.29 Trillion Net Profit in First Quarter of 2017

Monday, 01 May 2017 , 15:00:00 WIB - Advertorial

PGN´s gas pipeline (Doc. SOE Ministry)

PT Perusahaan Gas Negara PGN (PGN) has successfully gained Rp1.29 trillion net profit in the first quarter of 2017 despite external factors that bring negative impacts, such as the depreciation of world’s oil prices. "The performance of PGN keeps improving amid the global condition and fluctuating exchange rate of Rupiah to US Dollar," said the Secretary of PGN, Heri Yusup, through a press release, Monday (24/4).

At the first three months in 2017, PGN gained US$746 million net profit or increasing by US$26 million compared to the same period last year. "The improvement is supported by the increasing sales in the segment of exploration, and oil and gas production," Heri said.

Meanwhile, the profit of the operation reached US$155.7 million, the earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2017 reached US$254 million, and the net profit reached US$96.8 million (Rp1.29 trillion).

During the period of January-March 2017, PGN distributed and transmitted natural gas for 1,542 million standard cubic feet per day (MMscfd), lower than the same period last year that reached 1,643 MMscfd.

The volume of gas distribution reached 816 MMscfd, higher than the same period last year that reached 797 MMscfd, and the volume of natural gas transmission reached 762 MMscfd, lower than the same period last year that reached 846 MMscfd.

Heri said that PGN is confident that the company’s performance will keep improving to support the national economy. PGN commits to improve natural gas infrastructure, both pipeline and non-pipeline infrastructures like Compressed Natural Gas (CNG) and Liquefied Natural Gas (LGN), to expand the utilization of natural gas for the public.

In the first quarter of 2017, PGN pipeline infrastructure extended by 252 km, and now it reaches more than 7,278 km or equals to 80% of the national downstream natural gas pipeline.

Using the infrastructure, PGN distributes natural gas to 1,652 big industries and power plants, 1,929 commercial customers (hotels, restaurants, hospitals, and Small and Medium Enterprises (SMEs), and 204,000 households.

PGN’s customers are spread in many regions, starting from North Sumatera, Riau Archipelago, Riau, South Sumatera, Lampung, Jakarta, West Java, Banten, Central Java, East Java, North Kalimantan, and Sorong Papua.

PGN has completed numerous projects, such as the 42 km Muara Karang-Muara Bekasi gas distribution pipeline project, and the development of the other gas infrastructure. For instance, the 37 km pipeline in West Java, 165 km pipeline in East Java, and 8 km pipeline in North Sumatera and Batam.

Now, PGN is working on the 123 km gas distribution pipeline project for Central Sumatera, the 5 km submarine pipeline and its facilities for Riau Archipelago, and the development of the other gas infrastructure in West Java and Surabaya. Soon, PGN will distribute natural gas to some low-cost apartments in Jakarta.

"PGN keeps committed to develop and expand the national gas infrastructure amid the national economic condition that hasn’t recovered, and the depreciation of world’s oil prices," Heri said.