PGN posts lower net income on forex losses

Publicly-listed state gas distribution firm PT Perusahaan Gas Negara (PGN) announced on Wednesday that net income in the first half of this year had dropped by 82 percent compared to the same period last year, mainly due to foreign exchange losses.

PGN's corporate secretary, Widyatmoko Bapang, said net income in the first half ending June 30 was Rp 76 billion compared to Rp 422 billion in the same six-month period of 2003.

The rupiah weakened to Rp 9,415 per U.S. dollar at the end of June 2004 from Rp 8,465 earlier this year.

"The decline is not due to a poor performance on the part of the company," Widyatmoko said in a statement published on the company's website.

"The weakness in the local unit against the dollar will not have adverse implications for the company's performance as PGN generates most of its revenue in U.S. dollars."

Despite the decline in net income, Widyatmoko said the company's performance in the first half of 2004 was better compared to the same period last year.

PGN's revenue rose by 24 percent to Rp 2.1 billion from Rp 1.7 billion in the same period last year, boosted by a 17 percent revenue increase from the distribution business and a 65 percent revenue increase from the transmission business.

The rapid growth in the transmission business was attributed to the coming onstream in September 2003 of the gas transmission pipeline from Grissik in South Sumatra to Singapore.

The company's gross profit rose by 31.7 percent to Rp 986.7 billion from Rp 749 billion in the first half of 2003, while operating income rose by 14.8 percent to Rp 574.2 billion from Rp 500.1 billion in the same period last year. -- JP