PGN Completes Tender Offers Of 400 Million US Dollars, Strengthen Capital Expenditure Projections And Investment Plans

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) has completed an early tender offer of US$400 million on December 12, 2022. At the time limit for this early tender offer, PGN received a tender proposal from bond holders exceeding the maximum demand limit (oversubscribe).

The Tender Offer is scheduled to expire on December 23, 2022, with an early tender offer ending on December 9, 2022. Having received sufficient tender proposals from bond holders in the early stages of the tender, PGN no longer accepts tender submissions even though tender offers are still open until December 23, 2022.

Bond holders who apply for a tender before the deadline for early tender offers will earn USD 1.005.50 for each USD 1.000 of their bonds.

"The purpose of this tender offer is to buy back the PGN bonds of 400 million US dollars from 1.35 billion US dollars (5.125 percent), as part of PGN's initiative in the company's Liability Management activities. The trader offer generates a positive credit assessment from the Rating Institution for improving the company's liquidity health and easing the financing burden by 2024," explained PGN Director of Finance and Risk Management Fadjar Harianto Widodo, in a written statement, Friday, December 16.

After the tender offer, PGN's bond debt fell from USD 1.7 billion to around USD 1.3 billion including USD 393 million under PT Saka Energi Indonesia, bringing the company's total debt down from USD 2.1 billion to around USD 1.7 billion.

Fadjar added that the positive profit performance until the 3rd Quarter of 2022 was able to increase the equity and company's position in making maturing liabilities payments. This reduces the company's level of debt.

Konsolidasi's cash flow reflects the company's strong cash flow position, mainly driven by positive operating cash flow and increased cash receipts from customers.

PGN has posted revenues of US$2.6 billion, an increase of 17 percent in the third quarter of 2022 compared to last year's period. The revenue was influenced by an increase in the operational performance of the main business, including a significant increase in the upstream business segment. PGN can also maintain the realization of operating expenses below the target, so as to generate an increase in Operating Profits to US$480 million.

The increase in operating income and profit supported by low financial burdens contributed to the realization of net profit which was recorded at US$311 million, an increase of 8 percent compared to last year.

"In the future, PGN will optimize the projected capital expenditure and dividend payments. PGN prioritizes the principle of prudence in carrying out investment plans in the midst of challenging conditions," concluded Fadjar.

PGN as Pertamina's Gas Subholding, continues to strive to continue its positive performance trend amidst a dynamic business situation. Strategic policies taken include additional customers and market penetration, expansion of household services, business diversification to support the sustainability of the company's business through downstream gas derivative business development and supported by effective cost management and human resource development programs.

The positive trend of PGN's performance is expected to continue in order to provide optimal added value for stakeholders, especially shareholders and investors of PGN.