Decrease in Assets and Tax Disputes, PGN's Profit Drops 77.8%

PT Perusahaan Gas Negara (PGN) Tbk recorded a less excellent financial performance throughout 2019. Based on the company's financial report to the Indonesia Stock Exchange (IDX) on Friday (3/20), the state-owned energy company posted a net income of US$ 3.85 billion, down compared to US$ 3.87 billion in 2018. The cost of revenue rose to US$ 2.62 billion in 2019 compared to US$ 2.56 billion in 2018. It caused a decrease in gross profit to US$ 1.23 billion in 2019 from US$ 1.31 billion in 2018.

As a result, the PGAS-coded company's net profit throughout 2019 was also not too encouraging, only US$ 67.58 million. It dropped very deep, reaching 77.8 percent of the 2018 net profit of US$ 304.99 million. PGN's net profit fell due to a decrease in the value of the company's fixed assets of US$ 98.3 million and provision for tax disputes of US$ 127.72 million.