PGN Subholding Gas Pertamina Continues To Maintain Positive Performance
December 20, 2021 - PT PGN Tbk as Gas Subholding PT Pertamina (Persero) continues 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 the operational and financial performance following the RJPP and obligations fulfillment.
Currently, PGN's rating from Moody's is Baa2 and from Fitch BBB-with a stable outlook. Both are still in the investment-grade category, which means that the international rating agency considers that PGN has a good level of financial soundness and is projected to fulfill all of its obligations, including debt repayment.
With a record revenue book of USD 2,254.3 million in the third quarter of last year, PGN recorded an Operating Profit of USD 326 million. PGN also achieved an increase in profit of USD 286.2 million in the third quarter of 2021. It is an increase compared to the same period in 2020 of USD 53.3 million.
It 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 Quarter III 2020 of 812 BBTUD (YoY).
"The transmission volume for the same period in 2021 is 1,238 MMSCFD. PGN's position as Pertamina Gas Subholding further strengthens its consolidated performance and increases gas utilization in the refinery sector, marine transportation, and easy access to supplies from upstream," said the Corporate Secretary of PT PGN Tbk., Rachmat Hutama.
As for PGN's consolidated financial position as of September 30, 2021, it still shows a good financial position, with total assets of USD 7.54 billion, total liabilities of USD 4.25 billion, total equity of USD 3.29 billion, and the current ratio (comparison of current assets with short-term liabilities) by 2.24 times. It shows that the company's ability to meet its short-term obligations is still very good.
"The ratio of PGN's Debt Service (EBITDA / (Interest Expense + Principal)) is 2.69 times, showing the company's ability to meet interest payments and loan principal payments are 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.
It shows that PGN is still in a condition of good leverage, a healthy financial performance. Therefore, it is far from potential losses, and there is enough room for external funding for company development. Likewise, PGN's cash balance as of September 30, 2021, of USD 1.4 billion can be projected to meet debt repayment obligations.
With good performance and PGN's control 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 also increases 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.**