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Introduction & Market Context
PT Perusahaan Gas Negara Tbk (IDX:PGAS), Indonesia’s state-owned gas company, recently presented its Q1 2025 performance results, highlighting slight revenue growth despite cost pressures. The company maintains its dominant position in Indonesia’s natural gas market with a 91.24% market share, supported by extensive infrastructure spanning the archipelago.
The presentation comes as Indonesia’s economic growth is projected to remain below 5% in 2025 according to IMF forecasts, with inflation expected to stabilize at 2.5% (±1%) and an exchange rate of Rp16,562/USD. The crude oil price stood at USD 71.11 per barrel in March 2025, providing context for PGN’s operational environment.
As shown in the following map highlighting PGN’s extensive infrastructure network across Indonesia, the company operates 13,581 km of gas pipelines and 605 km of oil pipelines, positioning it as the backbone of the nation’s gas distribution system:
Quarterly Performance Highlights
PGN reported consolidated revenue of USD 967 million for Q1 2025, showing a slight year-over-year increase driven primarily by its gas trading and transmission segments. However, net profit decreased compared to the same period last year, reaching USD 62 million, as the company faced higher gas costs. EBITDA for the quarter stood at USD 205 million.
The company’s operational metrics remained strong, with gas trading volume at 861 BBTUD (slightly up from 858 BBTUD in Q1 2024), transmission volume at 1,602 MMSCFD, and regasification volume at 237 BBTUD (up 39% year-over-year). PGN maintained an impressive 99% infrastructure availability rate during the quarter.
The following chart summarizes PGN’s key financial and operational highlights for Q1 2025:
Detailed Financial Analysis
PGN’s financial position remained stable year-over-year, with total assets of USD 6,545 million and a strong cash position of USD 1,546 million at the end of Q1 2025. The company’s balance sheet shows total liabilities of USD 2,777 million against total equity of USD 3,768 million, maintaining a healthy financial structure.
Cash flow from operations was robust at USD 244 million, while the company invested USD 47 million in capital expenditures and other investments. Financing activities resulted in a cash outflow of USD 17 million, with foreign exchange impacts accounting for another USD 17 million reduction in cash.
The comparative financial performance between Q1 2024 and Q1 2025 is illustrated in the following bar graphs:
Revenue contribution analysis shows that gas trading and transmission segments remain the core of PGN’s business, accounting for 75% of total revenue. The upstream segment contributed 7%, with other segments making up the remaining 18%. Similarly, EBITDA contribution was dominated by gas trading, gas transmission, and other segments at 79%, with the upstream segment providing 21%.
PGN’s CAPEX for the quarter totaled USD 39 million, with 68% allocated to downstream and other segments, while 32% went to upstream activities. The company’s financial ratios show an EBITDA margin of 21% (down from 32% in the previous year) and a debt-to-equity ratio of 34% (improved from 41% a year earlier).
The following pie charts illustrate PGN’s revenue and EBITDA contributions by segment:
Strategic Initiatives
PGN continues to advance several strategic projects aimed at expanding its infrastructure and diversifying its business. Key projects include:
1. Oil Transportation (Cikamplek-Plumpang): A USD 90 million project scheduled for 2024-2027, featuring a 96 km pipeline with 79,800 BOPD capacity.
2. Gas Pipeline Infrastructure (Tegal-Cilacap): A USD 125 million project for 2025-2026 with 60 MMSCFD capacity.
3. City Gas Project: An ongoing annual project with USD 29 million budget and 0.2 BBTUD capacity.
4. LNG Hub Arun (Tank F-6004 Revitalization): A USD 42 million project for 2025 with 127,200 m³ capacity.
5. Biomethane Project: A USD 5 million initiative for 2025-2026 with 1.2 BBTUD capacity, aligning with the company’s sustainability goals.
The following slide details these strategic projects, their timelines, and investment values:
Forward-Looking Statements
Looking ahead, PGN is positioning itself as a provider of clean energy solutions for "a greener and more sustainable world," according to its vision statement. The company’s strategic pillars focus on growing and maintaining existing business, adapting to pursue adjacent opportunities, and stepping out to new business areas including gas-to-chemicals, biomethane, and hydrogen production and transport.
PGN’s customer base continues to expand, now serving 823,298 customers across Indonesia, including 3,291 industrial and commercial customers, 2,587 small businesses, and 817,420 households. The company’s gas supply mix consists of 93% pipeline gas and 7% LNG, with 41% sourced from the Pertamina Group.
The gas trading segment shows strong performance in serving power plants, which represent the largest industrial customer segment by consumption, followed by chemicals, ceramics, food, fabricated metal, and glass industries, as illustrated in the following breakdown:
Other operational segments also showed mixed performance, with gas transmission and LNG regasification volumes increasing, while oil and gas lifting volume decreased by 29% to 16,461 BOEPD. Oil transportation volume increased by 18% to 171,943 BOEPD, and LPG processing increased by 11% to 10.5 thousand tons.
As Indonesia continues its energy transition journey, PGN’s extensive infrastructure and strategic initiatives position the company to play a central role in the nation’s move toward cleaner energy sources while maintaining its dominance in the natural gas sector.
Full presentation:
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