PT Gas Negara aiming for Rp 90 billion net profit
PT Gas Negara aiming for Rp 90 billion net profit
JAKARTA (JP): The state-owned PT Perusahaan Gas Negara (PGN),
recently changing its legal status to a limited liability company
with a commercial mission, forecast a net profit of Rp 90 billion
(US$38.96 million) this year.
"With our new legal status and business increasing, we expect
to reach a net profit of about Rp 90 billion this year," the
company's president, Qoyum Tjandranegara, told reporters after a
ceremony for the installation of company directors and
commissioners yesterday.
Qoyum noted that last year, his company saw its net profit
increase by 20 percent to Rp 78 billion, derived mostly from its
operation in the greater Jakarta area.
He said PGN is currently making preparations to go public in
early 1998. As part of the preparations, the company will soon
set up three subsidiaries: PT Transmisi, PT Distribusi and PT Co-
Generation.
Transmisi will specialize in piping gas to distribution
centers and Distribusi will be in charge of distributing gas to
households and industrial users. Co-Generation will handle the
diversification of gas usage, including the development of small-
scale, gas-fired power plants and high-rise buildings.
He said PGN will eventually function as a holding company,
dealing only with investments and infrastructure developments.
"By changing its legal status, any private company can now
join the state company in the gas business," he said.
Qoyum said PGN has appointed Rothschild Ltd of Singapore as
its financial advisor in a tendering process to choose two
investors to become strategic partners of Transmisi.
"We're offering a 40 percent stake of Transmisi to other
investors," he said, adding that 11 foreign companies are
participating in the tendering process for the stake.
Among the 11 foreign companies are British Gas of Britain,
Enron of the United States, Gas du France (France), Vital Gas
(Italy) and Trans Canada (Canada).
"From this direct placement, we expect to get between $250
million and $350 million in fresh funds from the strategic
partners to help finance our new projects in Sumatra," Qoyum
said.
He said PGN will build an 800-km gas pipeline connecting the
Asamera gas field in Jambi province with Batam in Riau.
To finance the project, expected to cost $600 million, PGN has
acquired soft loans from the Asian Development Bank, Japan Exim
Bank and European Investment Bank.
The directors installed yesterday included Qoyum as president,
Rohali Sani as director of techniques, Nursubagjo Prijono as
director of development, W.M.P. Simanjuntak as director of
finance and Supardjono Karimun as director of general affairs.
The company's new board of commissioners is headed by
Soepraptomo Soelaiman. (13)