PGN net profit declines 9.5% in 2014 on higher financial charges, lower forex gains

[image : PGN]
[image : PGN]
JAKARTA (rambuenergy.com) – PT Perusahaan Gas Negara Tbk, a national natural gas distributor, posted net profit of US$722.75 million in 2014, down 9.5 percent from US$798.1 million in previous year, driven by higher financial charges.

The company posted financial charges of US$75.5 million in the period against US$21.8 million in 2013.

The company posted revenues of US$3.41 billion, increased 13.6 percent from previous year of US$3.00 billion.

Operating profit was US$982.06 million, up 5.2 percent from previous year of US$933.35 million.

EBITDA (earnings before interest, tax, depreciation and amortization) reached US$1.16 billion, edged up 3.6 percent from previous year of US$1.12 billion.

The sales increase was driven by a 5-percent increase in gas sales volume to 865 million standard cubic feet per day (MMSCFD), from 824 MMSCFD in previous year. The increase was also supported by a rise in oil and gas revenues and production from its upstream oil and gas subsidiary PT Saka Energi Indonesia, which operates, among others, Pangkah field offshore East Java.

Costs of goods sold increased by 22.7 percent to US$1.94 billion, compared to US$1.58 billion a year earlier due to a rise in oil and gas operating costs, expenses to purchase LNG and to operate its FSRU (floating storage and regasification unit) Lampung.

The sales increase was driven by a 5-percent increase in gas sales volume to 865 million standard cubic feet per day (MMSCFD), from 824 MMSCFD in previous year. The increase was also supported by a rise in oil and gas revenues and production from its upstream oil and gas subsidiary PT Saka Energi Indonesia, which operates, among others, Pangkah field offshore East Java.

Costs of goods sold increased by 22.7 percent to US$1.94 billion, compared to US$1.58 billion a year earlier due to a rise in oil and gas operating costs, expenses to purchase LNG and to operate its FSRU (floating storage and regasification unit).

Its subsidiary PT Transportasi Gas Indonesia transmited 852 MMSCFD of gas in 2014, compared to 854 MMSCFD in previous year.

Foreign exchange gains dropped to US$49.63 million from foreign exchange gain (non-cash) of US$154.08 million in previous year due to weakening of US dollar against Yen.

The company said the fall of oil price in 2014 affected revenues of its subsidiary PT Saka Energi Indonesia. The Pangkah field contributed revenues of US$269 million. The Pangkah field was acquired from US oil and gas company Hess.

PGN has expanded its upstream oil and gas business over the past few years to ensure oil and gas supply. In early 2014, it acquired 75 percent working interest in Pangkah field from Hess, raising its working interest to 100 percent.

On July 15, 2014, Saka Energy acquired 36 percent working interest in shale gas operator Fasken in Eagle Ford formation, Texas, US owned by Swift Energy Company for US$125 million. On Dec 12, 2014, the company acquired 8.91 percent interest in Southeast Sumatera working area owned by KNOC, which is operated by CNOOC.

On Dec 16, 2014, Saka Energi acquired all shares of Sunny Ridge Offshore Ltd, which holds 20 percent interest in Muriah working area, with Petronas as operator.

In 2014, PGN continued to develop its gas pipeline network to households, commercial and industrial areas. It also operated FSRU Lampung in November 2014. (*)

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