PGN pays dividend 157% of profit

Shareholders meeting of PT Perusahaan Gas Negara (PGAS) Tbk, the state-owned gas distribution and transmission company, finally approved dividend payment of Rp1 trillion, 57% higher than its 2008 net profit of Rp634 billion. 

So, how would PGN finance the dividend payment? Well, according to the meeting, Rp374 billion will be taken from retained earnings. Actually PGN reported stronger operational performance last year with operating profit of Rp4.66 trillion, surged 51% from 2007. Unfortunately, the company reported Rp2.5 trillion loss in foreign exchange translation. As a result, the company booked profit before tax of Rp1.28 trillion, dropped one third from Rp1.87 trillion in 2007. So, even with lower tax expenses at Rp476 billion, the company's net profit slashed 45% to Rp634 billion.

PGN actually had cash in hands of Rp3.5 trillion, almost tripled from December 2007, and increased further to Rp5.4 trillion as of March 31, 2009. PGN also reported net profit of Rp1.2 trillion in Q1 2009, jumped 113% from Q1 2008.

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