2Q18: Growth of 148% y-y in Net Profit
PGAS posted the growth of 3% q-q or 24% y-y to USD825 million in the 2Q18’s revenue. On the cumulative basis, the 1H18’s revenue grew by 14.9% y-y to USD1.62 billion. Meanwhile, the 2Q18’s net profit was at USD65 million edging down by 18% q-q or soaring by 148% y-y; net profit margin was at 7.9% (vs. 10.2% in the 1Q18, and -4.1% in the 2Q17).
2Q18 Gas Distribution: Volume +12% y-y, ASP -3.4% y-y
The increment in volume was boosted by the growing number of customers from the power plant and non-power plant industries to hit the figures of 2,245 customers (vs. 1,659 customers in the 2Q17) or surging by 35.3% y-y. The sales volume contributed by the two segments climbed to 99.5% (vs. 97.1% in the 2Q17).
The average selling price (ASP) was USD8.33/mmbtu (vs. USD8.62/mmbtu in 2Q17) declining by 3.4% y-y. We estimate that PGAS was capable of performing cost efficiency amid the government’s laws regulating gas selling price lower than USD6/mmbtu. Besides, the efficiency likely maintains PGAS’s gross margin above 30%.
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