The State Gas Company (PGAS) posted a loss last year, this is the analyst’s recommendation

ILLUSTRATION. The State Gas Company (PGAS) posted a loss last year, this is the analyst’s recommendation

Reporter: Akhmad Suryahadi | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. The performance of PT Perusahaan Gas Negara Tbk has decreased throughout 2020. Issuer with stock code PGAS This recorded a net loss attributable to owners of the parent company amounting to US $ 264.77 million, inversely proportional to bottomline PGAS in 2019 which recorded a net profit of US $ 67.58 million.

The decline in net income was in line with the decline in revenue for the issuer, also known as PGN. PGAS posted revenue of US $ 2.88 billion, a decrease of 25.02% from the realization of revenue in 2019 which reached US $ 3.85 billion.

Head of Research for Henan Putihrai Sekuritas, Robertus Yanuar Hardy, assessed that PGAS ‘performance throughout 2020 was still below the estimate he installed. The suppression of PGAS ‘performance in 2020 came from decreased revenues as a direct impact of closing industrial activities that were its customers.

PGAS must also record the burden of provision for tax disputes and the closure of several oil and gas blocks that are no longer operating.

Also Read: Realization of the operational performance of the State Gas Company (PGAS) throughout 2020

For your information, PGAS made a tax provision of US $ 278.3 million in 2020 for the 2012 and 2013 VAT tax disputes, where 18 of the 24 disputes were decided by the Supreme Court (MA), which were won by the Directorate General of Taxes (DGT).

On the other hand, PGAS also experienced a decline in operational performance. PGAS distribution volume was recorded at 828 billion british thermal unit per day (BBTUD) or decreased by 13% from the previous year which reached 951 BBTUD. Transmission volume also decreased by 8% on an annual basis from 1,370 Million Standard Cubic Feet per Day (MMSCFD) becomes 1,255 MMSCFD.

It is also believed that PGAS ‘performance will continue to grow. Robertus assessed that with this year’s economic improvement, gas distribution and PGAS transmission volume could grow in the range of 10% -15%.

Also Read: PGN (PGAS) turned into losses last year

In addition, the prospect of PGAS is also supported by the gas price policy for industry at US $ 6 per MMBTU. “This policy can actually encourage customers from the industrial sector to consume more gas, so that it can also increase the volume of the Company’s gas transmission and distribution,” explained Robertus to Kontan.co.id, Sunday (11/4).

Robertus recommended buying PGAS shares with a target price of IDR 1,520. As of Friday’s trading (9/4), PGAS shares closed up 1.54% to the level of Rp 1,320. PGAS is traded with price to earnings (PE) ratio of 30.2 times with a market capitalization of IDR 32 trillion.