JAKARTA (Yosefardi) – As the economy is slowing down, state gas distributor PT Perusahaan Gas Negara (PGN) Tbk (PGAS) expects lower profit growth in the first half of this year, as reflected on its achievement in the first quarter of this year.
PGN booked net profit of US$109.4 million, equivalent Rp1.24 trillion, in the first quarter of this year, dropped 38% from US$176.97 million in the same period of last year. Revenue also fell 13.4% to US$696.37 million from previous US$804.36 million. Financial expense jumped to US$21.61 million from earlier US$6.66 million.
Gas demand declined, mainly for basic chemical industry such as building and cement segments. Nation-wide, gas demand fell 10%. PGN allocates capital expenditure (capex) of US$400-500 million for this year, mainly to fund gas infrastructure projects.
PGN, through its unit PT Saka Energi Indonesia has completed the acquisition over participating interest in 2 oil and gas blocks in West Papua from US-based Murphy Oil.