JAKARTA (TheInsiderStories) - Indonesia’s state-owned gas distributor PT Perusahaan Gas Negara Tbk (IDX:PGAS) net profit drops significantly by 43.58 percent to US$401.19 million in 2015 from previous year of $711.02 million.
Based on the financial results released on Thursday, the sharp decline in net profit was attributable to higher cost of goods sold (COGS) which jumped to $2.11 billion from $1.97 billion in 2014, or up 7 percent year on year (YoY), while revenues fell 5.54 percent to $3.07 billion from $3.25 billion in previous year.
“To optimize the company’s performance, we have adopted various measures to increase efficiency. Therefore, we managed to make a profit in the midst of the economic slowdown,” PGN President Director Hendi Prio Santoso said in a statement.
In 2015, PGN distributed 1,591 million cubic feet of natural gas per day (MMSFCD), comprising 802 MMSCFD in distribution business unit and 789 MMSCFD in transmission business unit.
The company remarked that despite the slowing economy, PGN continued developing its gas infrastructure to expand gas use by the public.
In 2015, PGN completed the construction of over 800 kilometers of distribution and transmission pipelines in its existing and new regions such as Riau Islands, West Java, Banten, Jakarta, and East Java.
The company has also completed the 200-kilometer-long Kalija I gas transmission pipeline project connecting the gas source in the Kepodang field in the sea north of Java to the Tambang Lorok steam-powered electricity plant in Semarang, Central Java, belonging to the state-owned electricity company PT PLN.
“The completion of the Kalija I project is PGNs contribution to the nations electricity sector,” Heri Yusuf, PGN’s Corporate Secretary emphasized.
Currently, PGN owns and operates a 6,900-kilometer-long gas pipeline network representing 76 percent of the downstream gas pipelines in Indonesia.
PGN also distributes gas to 1,520 industries and power plants along with 1,750 commercial customers such as shopping malls, hospitals, hotels, and small and medium businesses as well as 107,690 households.
In 2015, Heri noted that PGN was tasked by the government to manage and operate natural gas networks for households in 11 districts or cities in Indonesia totaling 43,337.
The household networks built by the energy and mineral resources ministry cover four thousand connections each in Blora and Semarang in Central Java and Bogor, Cirebon, and Depok city in West Java; 5,234 for public apartments in Jakarta, Bogor, Depok, Tangeran and Bekasi (Jabodetabek) area; 3,311 in Palembang in Sumatra; 2,900 in Surabaya in East Java; 3,366 in Tarakan city in East Kalimantan; Bekasi city in West Java; and 3,898 in Sorong district in Papua (*)