PGN's net profits surge 376 percent to Rp 433 billion
PGN's net profits surge 376 percent to Rp 433 billion
JAKARTA (JP): Gas distribution company PT Perusahaan Gas
Negara (PGN) said on Friday its unaudited net profits increased
by 376 percent to Rp 433.1 billion (US$57.7 million) last year
from Rp 90.9 billion in 1998, despite the lingering economic
crisis.
Company president Abdul Qoyum Tjandranegera told reporters the
significant rise in profits was mainly due to growth in its
dollar revenue from natural gas distribution from gas fields in
Grissik, South Sumatra to the oil fields in Duri, Riau.
PGN has been operating a 544-kilometer gas pipeline -- the
country's longest -- to transport 310,000 million cubic feet per
day (MMCFD) of natural gas from the gas fields owned by Canadian
company Gulf Resources in Grissik to the oil field of American
oil and gas company PT Caltex Pacific Indonesia since October
1998.
In Duri, Caltex uses the gas to pump the Duri oil wells.
PGN receives 62 U.S. cents per million British thermal unit
(MMBTU) in transportation fees from Gulf.
"PGN has successfully gotten out of the economic crisis,"
Qoyum said after a ceremony to install 12 division heads of the
company.
Qoyum said PGN's unaudited sales increased by 46 percent to Rp
2.02 trillion last year from Rp 1.38 trillion in 1998, while its
assets rose to Rp 3.18 trillion in 1999, from Rp 2.78 trillion in
1998.
Aside from transporting the natural gas of other companies,
the company is also active in selling its own natural gas on the
domestic market, both to industries and households. It buys the
gas from state oil and gas company PT Pertamina and its
contractors. It mostly sells its natural gas in rupiah.
According to Qoyum, the company's own gas sales rose 4 percent
to 158.1 MMCFD in volume last year, from 152 MMCFD the previous
year.
The quantity of gas of other companies transported by PGN
reached 350.6 MMCFD last year, a 226 percent increase from 107.6
percent in the previous year.
Qoyum also said PGN was preparing two giant pipeline projects
which would link Sumatra with Singapore and Sumatra with Java
respectively.
The first pipeline project, which would stretch from Grissik
to Singapore, passing Sakernan in Jambi and Batam island, would
be built with a total investment of $370 million, mostly provided
by the Asian Development Bank.
The 521-kilometer pipeline, some of which will be underwater,
will transmit 400 MMCFD of natural gas from gas fields in South
Sumatra and Central Sumatra to industries in Batam and Singapore,
starting in 2002.
Qoyum said the government would receive dollar earnings
amounting to $396 million per year from the gas sales.
The second pipeline project linking South Sumatra and Cilegon
in West Java will be built with an investment of $580 million.
PGN will use the 546-kilometer pipeline to transport up to 600
MMCFD of natural gas from South Sumatra to industries in West
Java.
PGN expects the Japanese government to provide loans under the
special yen loan program to finance the South Sumatra-West Java
pipelines.
The Japanese government has prepared a multibillion special
yen loan program to help Asian countries devastated by the
economic crisis rebuild their infrastructure.
Qoyum estimated the use of gas, rather than diesel oil by
industries in West Java, would enable the government to save up
to Rp 3.8 trillion in fuel subsidies per year. (jsk)