Amid The COVID Pandemic, PGN Gas Subholding Pertamina Optimistic To Improve Operations And Finances

Illustration/Pertamina Public Relations

JAKARTA - PT PGN Tbk as the Gas Subholding PT Pertamina (Persero) continues to strive to improve operational and financial performance amidst the COVID-19 pandemic and economic recovery. Reflecting on PGN's performance in Quarter III 2021, PGN is optimistic that it can improve operational and financial performance in accordance with the RJPP and fulfillment of obligations.

PGN's current rating from Moodys is Baa2 and from Fitch BBB with a stable outlook. Both are still in the investment grade category. This means that international rating agencies consider that PGN still has a very good level of financial soundness and is projected to be able to meet all obligations, including debt repayment obligations.

The Corporate Secretary of PT PGN Tbk, Rachmat Hutama said, with a record revenue of 2,254.3 million US dollars in the third quarter, PGN managed to record an operating profit of 326 million US dollars.

PGN also managed to achieve an increase in profit attributable to its parent to US$286.2 million in the third quarter of 2021, an increase compared to the same period in 2020 of US$53.3 million.

This is supported by operational performance which shows a positive trend where gas trading volume during the January-September 2021 period is 873 BBTUD and an increase compared to the gas trading volume in the third Quarter 2020 of 812 BBTUD (YoY).

"The transmission volume for the same period in 2021 is 1,238 MMSCFD. PGN's position as Pertamina's gas subholding strengthens its consolidation performance and increases gas utilization in the refinery sector, marine transportation and of course easy access to supplies from upstream," Rachmat explained in a press statement at Jakarta, Saturday, December 18th.

As for PGN's consolidated financial position as of September 30, 2021, it still shows a good financial position, with total assets of US$7.54 billion, total liabilities of US$4.25 billion, total equity of US$3.29 billion, and the current ratio (comparison of current assets to liabilities). short term) by 2.24 times. This shows that the company's ability to meet its short-term obligations is still very good.

"PGN's Debt Service (EBITDA) ratio is 2.69 times, showing the company's ability to meet interest and principal payments is still sufficient," added Rachmat.

The level of PGN's leverage as reflected by the Debt-to-Equity (DER) ratio per Q3 2021 is 0.89 times, this value is still below the financial covenant limit (maximum 2.33 times) required by PGN lenders.

This shows that PGN is still in a condition of good leverage, healthy financial performance so that it is far from potential losses and is quite open to external funding space for company development. Likewise, PGN's cash balance as of September 30, 2021 of USD 1.4 billion can be projected to still be able to meet debt repayment obligations.

With good performance and control of PGN which is one level below Pertamina, this will not affect PGN's ability to meet its debt obligations, and will not affect Pertamina's financial position further.

As a group, PGN also recorded an upstream volume of 6.46 MMBOE, Regasification of 88 BBTUD, LPG Processing of 101 TPD, and Oil Transport of 9,301 BOEPD. The Company is also able to increase its market share by increasing the number of customers in various sectors, until the third quarter of 2021 it has served more than 600,000 customers with a natural gas pipeline network covering more than 10,760 km.

With improved upstream performance and corrected oil prices, this has a direct impact on the performance of Subhoding Gas affiliate Saka Energi.

"Based on Saka Energi's financial report, Quarter III/2021, Saka's cash balance is USD 250.9 million and is projected to be able to meet debt repayment obligations that will mature in May 2024. In addition, SAKA Energi's TW III financial performance also shows an improving trend by posting EBITDA USD 174 million," concluded Rachmat.