PGN (PGAS) Performance Outlook Assessed as Positive, Here Are the Stock Recommendations

PGN (PGAS) is positioning 2026 as a growth year by pushing deeper into industrial and commercial gas sales, which analysts see as the company’s main revenue engine. A concrete example highlighted is PGAS’ first gas-in delivery to industrial customer PT Bumi Menara Internusa (BMI) in Lamongan starting 1 January 2026, where usage is expected to scale from about 15,000 m³/month initially toward 80,000 m³/month as production optimizes. The underlying bet is that a rebound or expansion in manufacturing activity in 2026 would translate directly into higher gas demand and stronger long-term revenue visibility for PGAS.

The article also stresses that PGAS’ upside narrative is tightly linked to its infrastructure expansion pipeline, with multiple strategic projects underway to secure supply and widen access, particularly in Java and beyond. Key initiatives mentioned include Cisem Phase II (construction targeted to finish February 2026), fuel switching at Cilacap refinery, the Tegal–Cilacap pipeline to expand southern Java access, the Bintuni–Fakfak pipeline in Papua, and a city gas network program targeting 200,000 new household connections. Analysts view these as long-horizon, system-building investments, supported by relatively strong cash flow, though large-scale projects may still require external funding while keeping leverage ratios disciplined.

On the risk side, the piece flags two main pressures: upstream supply reliability and policy-driven margin constraints. Disruptions from aging upstream wells could force PGAS to rely more on LNG supply, which is typically pricier and can squeeze margins; it recalls an August 2025 episode when reduced upstream deliveries led to temporary gas diversions for customers in parts of West Java and Sumatra. In addition, the HGBT (regulated/discounted gas price) policy could weigh on margins if its quota expands. Despite these risks, the recommendations cited remain constructive: one analyst gives a buy call with a target price around Rp 2,200/share, while another suggests buy on weakness with a target around Rp 2,140/share.

Source : Kontan.co.id

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PGN (PGAS) Performance Outlook Assessed as Positive, Here Are the Stock Recommendations

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