The gas business is sluggish this year. Perusahaan Gas Negara Tbk (State Gas Company), (PGAS), has lowered their target sales growth for this year from 5% to 2% or 1,622.82 million cubic feet. The target revision was caused by a decrease in demand from Perusahaan Listrik Negara (State Electricity Company) (PLN).
Nusantara Suyono, the Finance Director from PGAS, said that the weakening demand has already been observed since 2015 until the first quarter of 2016. “We are currently negotiating with PLN for gas supply from Muara Tawar power plant. This year, the gas price is also expected to be lower than ever before,” said Nusantara.
The drop of target gas sales is estimated to have a pressure in the company profit. However, the management has not yet calculated how big the impact will be. In the stock trading on Monday (1/8), PGAS stock price soared by 4.3% to 3.430 IDR per level. (*)
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