Revenue Declines, Yet PGAS Profit Surges 35% in Q1 2026 – How Is That Possible?
PT Perusahaan Gas Negara Tbk (PGAS) recorded a net profit of US$121.84 million, equivalent to approximately Rp2.09 trillion, for the three-month period ending 31 March 2026, marking a growth of around 35.1% compared to Rp1.55 trillion (US$90.19 million) in Q1 2025.
Based on the unaudited interim consolidated financial statements as of 31 March 2026 released by the company, revenue for Q1 2026 was recorded at US$929.56 million (Rp15.98 trillion), a slight decline of 3.8% from Rp16.6 trillion (US$966.56 million) in Q1 2025.
Although revenue experienced a minor correction, the cost of goods sold was reduced more significantly from Rp14.19 trillion to Rp13.25 trillion, reflecting operational efficiencies that could strengthen future profitability. Gross profit thus increased to Rp2.71 trillion from Rp2.42 trillion in the same period the previous year.
Operating profit for Q1 2026 was recorded at US$117.65 million (Rp2.02 trillion), up from US$105.87 million (Rp1.82 trillion) in Q1 2025. The operating profit margin improved to ~12.7%, compared to ~11% in Q1 2025. This has caught the market’s attention as an indicator of margin resilience amid fluctuations in natural gas prices. Profit before tax surged 29.2% to Rp2.34 trillion from Rp1.81 trillion.
PGAS is a state-owned enterprise listed on the Indonesia Stock Exchange (BEI) in the natural gas distribution and transmission sector.
Financial Position: Equity Strengthens, Liabilities Decline
Total assets of PGAS as of 31 March 2026 were recorded at US$6.2 billion (Rp106.59 trillion), relatively stable from Rp107.10 trillion as of 31 December 2025. Total liabilities decreased from Rp45.1 trillion to Rp42.52 trillion, reflecting an improvement in debt structure that could be a positive focus for investors. The company’s net equity increased to Rp64.07 trillion from Rp61.99 trillion at the end of 2025.
Cash and cash equivalents as of 31 March 2026 were recorded at Rp23.37 trillion, a slight increase from Rp22.96 trillion. The debt-to-equity ratio improved from 0.73x to 0.66x, while the current ratio rose from 1.77x to 2.01x, indicating a solid short-term liquidity position.
Stock Valuation and Dividend Yield Estimation
Based on the closing price of PGAS at Rp1,940 per share on 27 April 2026 and Q1 2026 EPS of Rp63.60 (USD 0.0037 × Rp17,183.1), the annualized EPS could potentially reach ~Rp254.4.
The estimated Price-to-Earnings (P/E) ratio based on Q1 2026 is around 7.6x, which investors monitor as a benchmark for the relative valuation of this state-owned energy issuer. The last recorded dividend in this report was Rp182.08 per share for the 2024 fiscal year.
Conclusion
The Q1 2026 interim financial report of PGAS reflects significant improvements in profitability: net profit of Rp2.09 trillion grew 35% annually, driven by a 6.6% reduction in cost of goods sold despite a 3.8% revenue correction. The balance sheet position improved with liabilities declining and equity strengthening to Rp64.07 trillion, reflecting a financial foundation that could attract medium-term investors. Investors should monitor announcements from the 2026 Annual General Meeting of Shareholders to learn about dividend distribution decisions for the 2025 fiscal year through official disclosures on the BEI (www.idx.co.id).