PT Perusahaan Gas Negara Tbk (PGAS) posted a current year loss attributable to the owners of the parent company of US$264.77 million in 2020 compared to the previous year, which posted a profit of around US$67.58 million.

PGN's Finance Director, Arie Nobelta Kaban, said that a tax dispute regarding VAT triggered the loss in 2012 - 2013, which was filed by the Directorate General of Taxes (DGT) through judicial review (PK). Supreme Court decision in December 2020 held PGN liable to pay to the tax authority amounting to US$278.4 million.

"Besides, there were also asset impairments in the oil and gas sector of US$78.9 million," he said in a press release on Monday (12/4).

According to Arie, without these two factors beyond management's control, PGN's financial performance would still record a US$92.5 million net profit. This profit was still higher than the net profit distributed to the parent entity in the previous year.

"Management has made various efforts to maintain company performance, including for tax disputes at the Supreme Court," he said.

He added, PGN recorded revenues of US$2.88 billion or around Rp42.07 trillion (average middle exchange rate Jan-Dec 2020 Rp14,582/US$). PGN recorded an operating profit of US$303.71 million and an EBITDA of US$696.85 million of these revenues.

"PGN achieved this accomplishment through management's efforts to make improvements and efficiency programs in various business processes that we're able to reduce opex by US$180.4 million (Rp2.6 trillion), compared to 2019. Also, management has succeeded in reducing Capex. one of which is the construction of the Rokan oil pipeline, amounting to US$150 million (Rp2.1 trillion)," he explained.

From the calculation of financial ratios, PGN's consolidated financial position as of December 31, 2020, still shows a good financial position, with total assets of US$7.53 billion, which includes cash and cash equivalents of US$1.18 billion, liabilities of US$4, 57 billion, equity of US$2.96 billion and the current ratio (ratio of current assets to short-term liabilities) of 1.7 times.

"This shows that the company's ability to fulfill its short-term obligations is still very good," he said.

Meanwhile, a debt service ratio of 1.3 times shows its ability to meet adequate interest and principal payments.