The performance of the first semester is depressed, see the recommendations for the shares of Perusahaan Gas Negara (PGAS)

ILLUSTRATION. Perusahaan Gas Negara (PGAS) posted a decrease in revenue and net profit during the first semester of 2020.

Reporter: Akhmad Suryahadi | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The Covid-19 pandemic has also suppressed the performance of PT Perusahaan Gas Negara Tbk (PGAS). This state-owned company posted a decrease in revenue and net profit during the first half of 2020.

PGAS posted revenues of US $ 1.46 billion during the first six months of 2020, down 17.97% (yoy) from the same period the previous year. PGN earned a net profit of US $ 6.72 million in the first half of 2020. This realization fell 87.56% (yoy) compared to the realization in the first half of 2019 of US $ 54.04 million.

NH Korindo Sekuritas analyst Meilki Darmawan still recommends buying (buy) PGAS shares. The consideration is the potential for the gas network business (jargas) which will remain one of the government’s priorities as well as internal efficiency by cutting operational costs or operational expenditure (opex) around 15% -35% due to exploration delays by Saka Energi.

Also Read: Improve performance, this is the focus of the State Gas Company (PGAS) in the second semester

In addition, PGAS’s business portfolio innovation in the petrochemical industry is also a consideration for recommendations on PGAS shares. Meilki recommends buy PGAS shares with a target price of IDR 1,400. “Recommendation buy I will still keep it this year, “Meilki told Kontan.co.id, Sunday (9/6).

According to Ministerial Decree (Kepmen) Number 83 of 2020, the government has set the natural gas price for industry at around US $ 6 per million British thermal units (MMBTU). Meilki sees that the impact of this regulation will erode PGAS margins.

Meilki will review related PGAS performance estimates until the end of this year in relation to PGAS ‘performance which was depressed throughout the first semester of 2020. On Friday trading (4/9), shares PGAS closed down 1.53% to the level of Rp 1,290.