JAKARTA – PT Perusahaan Gas Negara Tbk (PGAS), a subsidiary of the state-owned enterprise operating in the natural gas sector, has revealed that the extension of the Specific Natural Gas Price (HGBT) programme in 2025 could potentially pressure the company’s gross profit margin (GPM).

Arief Setiawan Handoko, President Director of PGAS, stated that the new HGBT tariff has been set in the range of USD 6.5-7 per Million British Thermal Unit (MMBtu), which will impact the company’s profitability.

"However, we hope that this increase will also bring positive effects for PGAS," Arief said during a hearing with Commission VI at the Senayan Complex, Jakarta, on Wednesday (12/3).

Although he did not disclose the revenue targets for 2024, according to data from IDNFinancials.com, PGAS recorded a net profit of USD 263.38 million up to the third quarter of 2024, representing an increase of 32.69% year-on-year (yoy).

PGAS’s revenue also grew by 4.67%, reaching USD 2.81 billion, with most of the revenue (USD 1.9 billion) coming from third parties, while the remainder was generated from related parties.

"With the new HGBT policy in place, the challenge for PGAS going forward will be to maintain a balance between revenue growth and the impact of rising gas tariffs on the company’s profit margin," Arief added.

On Thursday’s trading session (13/3), PGAS’s stock price rose by 4.30% as of 2.46 PM WIB. However, over the past month, PGAS shares have declined by 3.08%. (DK/KR/ZH/VA)