PGAS' 1H14 result update

PGN (PGAS) has released its 1H14 result with revenue growing by 14.2% yoy to US$1.70 bn while
net profit down by 19.1% yoy to US$370 mn. The lower bottom line in 1H14 still dragged by a
US$18.3 mn of forex loss Vs. US$68.2 mn gain in 1H13 and also from a much lower derivative gain
of only US$4.5 mn Vs. US$41.6 mn in 1H13. Excluding this non-core items, PGAS' core profit grew by
10.4% yoy to US$384 mn Vs. US$348 mn in 1H13. On the operational side, distribution volume in
1H14 reached 866 mmscfd, up by 4.8% yoy, on the back of higher volume from Conoco Phillips.
Meanwhile, transmission volume was down by 1.8% to 860 mmscfd.
On a quarterly basis, the company booked a strong improvement in 2Q14 with net profit up by 9.5%
qoq while revenue only inched up by 2.4% qoq mostly driven by much higher margin from upstream
business with gross margin of 47.3% Vs. gas distribution business of 38.5%.

*Source Ciptadana Research Department