PT Perusahaan Gas Negara Tbk (PGAS) Q2 2024 earnings summary

Executive summary

• Revenue for 6M 2024 reached USD 1,839 million (up 3% year-over-year), with net profit at USD 187 million, a 28% increase year-over-year.

• Operating profit rose to USD 293 million, up 3.4% year-over-year, and total comprehensive income attributable to owners was USD 173 million.

• The company completed full repayment of its USD bonds in May 2024, reducing total liabilities to USD 2.71 billion from USD 3.06 billion at year-end 2023.

• Gas sales volume declined 9% year-over-year due to supply constraints, but gas transmission volume rose 4% year-over-year.

• Strategic projects advanced, including city gas expansion, LNG Hub Arun revitalization, and a new biomethane initiative.

Financial highlights

• Consolidated revenue increased 3% year-over-year, mainly from LNG trading and gas transmission segments.

• Net profit rose 28% year-over-year, supported by higher operating profit, lower finance costs, and no new provisions for tax disputes or onerous contracts.

• EBITDA margin was 31% for 6M 2024, slightly down from 32% in the prior year.

• Total assets decreased to USD 6,146 million from USD 6,599 million at year-end 2023.

• Ending cash balance was USD 997 million, with positive operating cash flow of USD 410 million.

Outlook and guidance

• Investment plans remain prudent amid challenging conditions, with a focus on strategic infrastructure and green energy projects.

• Management expects continued stable demand in gas trading and transmission, with ongoing focus on operational efficiency and cost control.

• The company is monitoring regulatory changes and market volatility, especially in LNG pricing and government-mandated gas prices.

• City gas, LNG hub, and biomethane projects are expected to drive future growth and support Indonesia's energy transition.