State-owned oil and gas company PT Perusahaan Gas Negara Tbk (PGN) posted an income of US$1,469.17 million for the first half of 2020, largely contributed by gas sales.

The current economic situation has had a trickle-down effect on the company's income, PGN Finance Director Arie Nobelta Kaban noted in a written statement released on Saturday.

With the first-semester income reported at $1,469.17 million, the company posted consolidated operating profits of $193.09 million, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $390.17 million.

Despite its performance experiencing pressure from external factors, PGN will make continued efforts to maintain its operational and financial performances, especially in fulfilling the national gas requirements, he stated.

The COVID-19 pandemic, declining oil and gas prices, and the rupiah's weakening exchange rate against the US dollar also had an impact, especially on the company's upstream businesses, he remarked.

The upstream businesses were dependent on the market, particularly on oil and gas prices and LNG prices, he pointed out.

The low oil and gas prices led to a decline in the incomes of upstream businesses while operating costs did not decline accordingly, he stated.

The lower-than-projected oil and gas prices had an impact on the upstream businesses' income and recoverability of assets managed by PT Saka Energi Energi Indonesia (ANTARA).