PT Perusahaan Gas Negara Tbk (PGAS) seeks funding of US$500 million in this year - Photo: Special

Jakarta (TheInsiderStories) – Indonesian gas producer, PT Perusahaan Gas Negara Tbk (PGAS) seeks funding of US$500 million in this year. It will be met by bank loan and global bond, said the top management on Thursday (08/08). Recently, the company has received loan from PT Bank Mandiri Tbk (IDX: BMRI) $350 million.

“Global bond will become one the sources. We have a plan to issue global bond but we can’t disclose the time and value,” said the CEO Gigih Prakoso at the State Own Enterprises (SOEs) ministry by adding that the company is still discussing the matter with related parties.

He explained that the issuing of global bond as a way the company to meet the capital expenditure of $500 million in this year. The state-owned enterprises has a mandate from the government to deploy 78,000 household gas network in 2019. To date, the number of household gas network are reached 564,000.

Early of this year Perusahaan Gas Negara has acquired PT Pertamina Gas (Pertagas) for Rp20.18 trillion (US$1.41 billion), after the SOEs ministry decided form an energy holding under a state-owned energy producer, PT Pertamina. The ministry was officially established the energy holding on April 11, 2018.

In details, the takeover payment scheme will be carried out in two stages. First, 50 percent of the total purchase price or equivalent to Rp10,09 trillion will use the cash payment scheme. Secondly, the company will issue a Promissory Note for the rest of the shares

By this process, Pertamina will direct PGAS to manage the gas business in an integrated manner in Indonesia as stipulated in Government Rule Number 6 Year 2018. Moreover, the company added gas processing and utility business lines, also accumulated additional liquefied natural gas (LNG) portfolio and strengthen its gas distribution and transmission business.

The Pertagas acquisition values of 40.77 percent of PGAS equity, based on September 2018 financial statement. In that period, the gas producer’ equity recorded at $3.31billion, while the liability was $3.34 billion.

At the end of 2018, Perusahaan Gas Negara liability jumped 41 percent to $4.73 billion with short-term liability increased almost double. The promissory note has given another burden to company’s financial structure.

But the company still gained  profit, as it spiked by 54 percent from $196.9 million in 2017 to $304.99 million in 2018. While, the revenues increased by eight percent to $3.87 billion. PGAS shares owned 56.96 percent by Pertamina and 43.03 percent by public.

US$1: Rp14,300

Written by Staff Editor, Email: theinsiderstories@gmail.com

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