PGN posts lower net income on forex losses

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