Indonesian government aborted the proposal of PT Perusahaan Gas Negara Tbk (IDX: PGAS) to rise the gas prices for industrial sector, said the official today (10/30) - Photo by the Company

JAKARTA (TheInsiderStories) – As a part of establishing energy holding, PT Perusahaan Gas Negara Tbk (IDX: PGAS) paid off its remaining commitment on Rp10.22 trillion (US$772.39 million) promissory notes to acquire PT Pertamina Gas (Pertagas) shares from state-owned energy producer PT Pertamina.

Corporate Secretary of PGAS Rachmat Hutama, said the payment amounted half of the total 2.59 million shares acquisition values.

“Our obligation related to 51 percent shares on Pertagas has been completed,” he said in written statement today (03/06).

The acquisition of Pertagas valued of Rp20.18 trillion. Previously, the gas producer and distributor pledged to pay those in two promissory notes. Each will be paid in six months maturity with 8.41 percent interest annually.

The initial payment amounted half of the value has been paid on Dec. 28, 2018. In December, the first promissory notes balance was $691.04 million.

PGAS and Pertamina had reached Conditional Sales and Purchase Agreement (CSPA) on June 29, 2018. In establishing the energy state-owned enterprise holding, Pertamina takes over PGAS shares, vice versa the company acquires shares of Pertagas.

By the acquisition, Perusahaan Gas Negara added gas processing and utility business lines, also accumulated additional liquefied natural gas (LNG) portfolio. To the end, PGAS can strengthen its gas distribution and trasmission business, official said.

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

At the end of 2018, PGA 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 a great profit, as it spiked by 54 percent from $196.9 million in 2017 to $304.99 million in 2018.

Meanwhile, 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= Rp14.000

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