MedcoEnergi Achieved Important Milestones

Senoro Upstream and Downstream LNG Project

MedcoEnergi as a Private National Oil & Gas Company and its partners has succeeded in monetizing the Senoro gas field which was previously considered as stranded gas, by supplying gas to the Donggi Senoro LNG plant among others. The inauguration of both projects was in conjunction with the release of first cargo of LNG shipment by the President of the Republic of Indonesia, Mr. Joko Widodo.

Strengthening Our Producing Portfolio

Senoro Gas Development, Central Sulawesi, Indonesia

Senoro Gas Development, one of MedcoEnergi's major developments, was once considered stranded gas due to its remote location and unavailability of infrastructure for the gas captives. We successfully develop and monetize the abundant gas resources into high quality markets that will take gas up to 310 mmscf per day.

Delivering Projects Development

Donggi Senoro LNG, Central Sulawesi, Indonesia

The Donggi Senoro LNG will be the fourth LNG plant in operation in Indonesia and the first LNG project built by national companies (MedcoEnergi, Pertamina) and partner Mitsubishi. The plant has a total capacity of 2 million tons of LNG per annum with gas supply from the Senoro-Toili gas field, in which MedcoEnergi also participate.

Clean Energy for a Cleaner World

Sarulla Geothermal, North Sumatera, Indonesia

The construction of Sarulla Geothermal Power Plant has started in 2014, and will produce geothermal power for 3 x 110 MW electricity. As the world's largest single-contract geothermal power project upon completion, the plant is envisioned to provide clean and sustainable electricity in Indonesia and expected to reduce carbon dioxide emission up to 1.3 million tonnes a year.

Monetizing Reserves

Block A, Aceh, Indonesia

In January 2015, MedcoEnergi inked a Gas Sales Agreement of over US$ 2 billion in value, monetizing 200 BCF reserves from the Block A Production Sharing Contract in Aceh Province, Indonesia. The customer is the state owned company Pertamina, with an agreed gas price of US$ 9.45 per MMBTU. This contract demonstrates the Company’s support to the development of the Indonesian domestic gas market, at the same time creating value for the company and establishing a vital economic presence in the province of Aceh.

Stock

11/12/2016
MEDC-IDX
(IDR)
1,345
Market Cap
(Trilion IDR)
4.5
Volume
(lot)
27,109

Whistleblower

Ensuring MedcoEnergi is a safe, fair and honest place to work.
Thursday, 17/11/2016 WIB MedcoEnergi Completes Acquisition of ConocoPhillips’ Interest in South Natuna Sea Block B

PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that it has now completed the a ...

Wednesday, 09/11/2016 WIB MedcoEnergi Further Increases Interest in Aceh Block A PSC

PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“MedcoEnergi”) is pleased to announce it has reached an agreement

Wednesday, 02/11/2016 WIB MedcoEnergi Announces Timely Completion of NNT Transaction

PT Medco Energi Internasional Tbk is pleased to announce a successful completion of the Company’s purchase of a 50% stake in PT Amman Mineral Internasional, whi ...

Monday, 24/10/2016 WIB MedcoEnergi Announces its 9M16 Financial Results

Today, PT Medco Energi Internasional Tbk announced its un-audited consolidated financial statements for the period ending 30 September 2016 (“9M16”).

Friday, 30/09/2016 WIB MedcoEnergi EGMS Results & 1H16 Financial Results

Today PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") held an Extraordinary General Meeting of its Shareholders (“EGMS”) with two agenda items.

Monday, 19/09/2016 WIB MedcoEnergi and ConocoPhillips Sign Share Sale and Purchase Agreement for South Natuna Sea Block B

PT Medco Energi Internasional Tbk (“MedcoEnergi" or the “Company”) has signed a share Sale and Purchase Agreement

Monday, 05/09/2016 WIB MedcoEnergi Sells Its 100% Interest in Bawean PSC

PT Medco Energi Internasional Tbk and its subsidiary Medco Bawean (Holding) Pte Ltd (together as “MedcoEnergi” or the “Company”), have entered into a Sale and Purc ...

Thursday, 30/06/2016 WIB MedcoEnergi AGMS & EGMS Continue to Deliver Energy in the Challenging Year of Oil and Gas Industry

PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") yesterday held the Annual General Meeting of Shareholde ...

Thursday, 30/06/2016 WIB MedcoEnergi Leads “Indonesia, Inc.” to Bring Back Indonesia’s Strategic Assets from Newmont

PT Medco Energi Internasional Tbk (“MedcoEnergi”) is pleased to announce that it has agreed to acquire a controlling st ...

Thursday, 30/06/2016 WIB MedcoEnergi Announces its Audited 1Q 2016 Financial Results

Today, PT Medco Energi Internasional Tbk has announced its audited consolidated financial statements for the period ending 31 March 2016 (“1Q 2016”).

MedcoEnergi Completes Acquisition of ConocoPhillips’ Interest in South Natuna Sea Block B

Jakarta, November 17, 2016 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that it has now completed the acquisition of ConocoPhillips Indonesia Inc. Ltd. (“CIIL”) and ConocoPhillips Singapore Operations Pte. Ltd. (“CSOP”), both subsidiaries of ConocoPhillips (“COP”).

CIIL is the Operator of the South Natuna Sea Block B PSC (“SNSB”) with a 40% working interest and is also the Operator of the West Natuna Transportation System (“WNTS”). CSOP operates the Onshore Receiving Facility (“ORF”) in Singapore. The WNTS infrastructure together with the Malaysian pipeline is, and will continue to be the focal point for the commercialization of existing discoveries and ongoing exploration activity within the Natuna area.

Roberto Lorato, CEO of MedcoEnergi said “Our immediate priority is to maintain safe operations and business continuity. Hence, our commitment to maintain the current organization and to continue with the planned drilling program in 2017 and beyond.  We will also maintain SNSB’s world-class operating scale and infrastructure together with its best-in-class health, safety, environmental and social performance standards”.

Hilmi Panigoro, President Director of MedcoEnergi, remarked that, “Following our recent completion of the purchase of the PT Newmont Nusa Tenggara, this transaction is the second major milestone for the Company this year. With the addition of SNSB, not only will MedcoEnergi gain access to a world-class integrated offshore oil and gas operation, but also strengthen its position as Indonesia’s premier independent energy and natural resources Company.” 

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MedcoEnergi Further Increases Interest in Aceh Block A PSC

Jakarta, 9 November 2016 – PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“MedcoEnergi”) is pleased to announce it has reached an agreement to acquire a further 26.6666% interest in the Block A Aceh Production Sharing Contract (“Block A”) from KrisEnergy. Completion of the transaction is conditional on the approval of the Government of Indonesia and the Government of Aceh. Upon completion of this transaction MedcoEnergi will hold an 85% working interest in Block A.

MedcoEnergi also announces the completion of its acquisition of the Japex 16.6667% interest in Block A following the earlier announcement on May 2, 2016.

Roberto Lorato, CEO of MedcoEnergi remarked “This further acquisition increasing our interest in Block A aligns both our commitments for shareholder value creation and national development in support of the Government’s plan to develop Aceh infrastructure. The first stage development of the large resources on the block is within budget and on track to deliver first gas in Q1 2018.”

Facts

The current participating interests in the block are MedcoEnergi 58.3334% (operator) and KrisEnergy 41.6666%.

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MedcoEnergi Announces Timely Completion of NNT Transaction

Jakarta, November 2, 2016 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce the successful completion of the Company’s purchase of a 50% stake in PT Amman Mineral Internasional, which controls 82.2% of PT Newmont Nusa Tenggara (“NNT”). The transaction which was first announced on June 30, 2016 has received all related regulatory approvals as well as MedcoEnergi shareholder approval.

PT Newmont Nusa Tenggara operates the world class Batu Hijau copper and gold mine on the Island of Sumbawa, Indonesia and has access to a several exploration prospects as well as the large undeveloped Elang discovery within its Contract of Work. In 2015, production from Batu Hijau, reached 240 million lbs of copper and 0.3 million oz of gold.

Hilmi Panigoro, President Director of MedcoEnergi, said, “This acquisition is immediately accretive and marks a monumental milestone for MedcoEnergi and our stakeholders including the Indonesian government. We always take pride in our commitment and achievement in maintaining world-class standards of safety, environmental stewardship and social responsibility, as well as high quality workforce. Given NNT’s world-scale operations, the Company is underway in its transformation from being world-class to world-scale.”

Similarly, Chairman of MedcoEnergi, Muhammad Lutfi, emphasized how the transaction further proves and strengthens MedcoEnergi’s vision, mission and values. The Company aims to be one of the leading contributors to national economic development, a champion in global competition, a pioneer in promoting progress and innovation, and a leader in ensuring sustainability in everything the Company does.

MedcoEnergi together with AP Investment joined forces last year for the transaction and received positive support from the three largest state-owned banks. AP Investment is led by Agus Projosasmito, former President Director of Danareksa Securities.

“My deepest gratitude goes to the Government of RI who could see the immediate strategic value of the transaction and today is further evidence of their support for MedcoEnergi, to be a global pioneer. The next path for the Company is to partake in ensuring that resource-rich Indonesia achieves higher quality, improved efficiency, and better utilized resources as its competitive edge. Access to abundant and affordable energy resources, mineral resources, or human resources of highest quality is the birthright of every Indonesian, and that is why MedcoEnergi exists” remarked Arifin Panigoro, Founder of MedcoEnergi.

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MedcoEnergi Announces its 9M16 Financial Results

SUMMARY OF 9M16 PERFORMANCE

Operational

  • Average production of 63.9 MBOEPD
    • Oil Production – 29.8 MBOPD
    • Gas Production – 199.2 MMSCFD  
  • Increased production volume by 21.1% above 9M15
  • Obtained shareholders’ approval for the acquisition of 50% shares in PT Amman Mineral Investama, which will indirectly control 82.2% interest in PT Newmont Nusa Tenggara
  • Signed a Share Sale and Purchase Agreement to acquire a 40% Operating interest in the South Natuna Sea Block B PSC

 

Financial

  • Revenue US$416.9 million, Gross Profit US$159.5 million and Operating profit US$86.5 million
  • EBITDA US$181.5 million, EBITDA margin increased to 43.5% from 39.5% in 9M15
  • Oil and Gas operating cash costs reduced by 28% compared to 9M15
  • Net profit of US$22.3 million

 

 

Jakarta, 24 October 2016 – Today, PT Medco Energi Internasional Tbk announced its un-audited consolidated financial statements for the period ending 30 September 2016 (“9M16”).

Roberto Lorato, the CEO of MedcoEnergi stated that “Our production continues to be strong and we are on track to meet our increased targets for the year. We have focused upon our cost efficiency efforts and will continue to do so. The Company’s acquisitions are also on schedule and our target remains to complete both before the end of the year.”

9M16 Operational Key Points

  • Production volume was 21.1% higher than in 9M15 at 63.9 mboepd.The increase in production volume was mainly attributed to the additional contribution of Senoro-Toili Gas field.
  • MedcoEnergi’s average realized oil price for the period was US$ 39.5/bbl or 26.1% lower compared to 9M15, whilst average realized gas price was US$ 4.2/mmbtu or 23.4% lower from 9M15.
  • The Company lowered unit production cash costs by 28% to US$ 7.9/boe, well within the Company’s 2016 full year target of below US$ 10/boe.
  • Awarded Block A Aceh EPC contract to JEC to construct the gas plant facilities. Construction is on track and under budget with first gas still expected in Q1 2018

9M16 Financial Key Points

  • Total revenue was booked at US$ 416.9 million, gross profit recorded at US$ 159.5 million and operating income increased 6.4% to US$ 86.5 million.
  • MedcoEnergi’s EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)  increased by 10% to US$ 181.5 million, with an improved EBITDA margin up from 39.5% to 43.5% year on year.
  • MedcoEnergi’s profit attributable to owners of the parent company increased significantly from net loss of US$ 51.1 million in 9M15 to net profit of US$ 22.3 million in 9M16.
  • Obtained shareholder approval for the acquisition of a 50% stake in PT Amman Mineral Investama which will indirectly control 82.2% interest in PT Newmont Nusa Tenggara. Closing is expected in October 2016.
  • Signed a Sale and Purchase Agreement to acquire Japex’s 16.67% interest in the Block A Aceh PSC. Closing is expected in October 2016.
  • Signed a Share Sale and Purchase Agreement with ConocoPhillips to acquire a 40% participating interest (and Operatorship) in the South Natuna Sea Block B PSC, along with West Natuna Transportation System gas transportation system. Closing is expected in November 2016.
  • Signed a Share Sale and Purchase Agreement to divest a 100% participating interest in Bawean PSC. Closing is expected in Q4 2016.
  • Obtained shareholder approval for a rights issue with a target to raise an initial US$150 million.
  • Raised a total of IDR 2.5 trillion through its Shelf Registered IDR bond program. The recent issuance was heavily oversubscribed and the Company will issue another phase of this program in November 2016.

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MedcoEnergi EGMS Results & 1H16 Financial Results

Jakarta, 30 September, 2016 – Today PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") held an Extraordinary General Meeting of its Shareholders (“EGMS”) with two agenda items. The first item approved was the acquisition of 50% of PT Amman Mineral Investama which will indirectly control an 82.2% interest in PT Newmont Nusa Tenggara (the “Acquisition”). The second agenda item approved was a capital increase through a limited public offering with preemptive rights to shareholders (“Rights Issue”).

The Acquisition will add significant shareholder value by giving access to a world class operating facility at Batu Hijau with proved reserves of 2.6 billion lbs of copper and 2.7 million oz of gold and future access to discovered undeveloped reserves of 12.9 billion lbs of copper and 19.7 million oz of gold. The Acquisition will add scale to the Company's equity and investment portfolio, and will materially elevate the revenue contribution from non-energy sectors.

Through the Rights Issue, the Company will raise fund the equivalent of approximately US$ 150 million. The proceeds will be used to repay maturing debt and to fund capital expenditures. Post Rights Issue, the Company will have a stronger capital structure to support its expanded activities.

Today, the Company has also released its audited consolidated financial statements for the six month period ending June 30, 2016 (“1H16”), and results are summarized below.

1H16 Operational Key Points

  • Oil and Gas production volume of 64 MBOEPD was 29% higher than 1H15. The increase in production volume was mainly due to the continued excellent performance from the Senoro-Toili Gas field.
  • Compared to 1H15, the Company reduced oil and gas production cash costs per unit by 32% to US$ 7.6/boe, well within the Company’s 2016 full year target of below US$ 10/boe.
  • 1H16 revenues of US$ 281 million with an average realized oil price of US$ 38.3/bbl and average realized gas price of US$ 4.18/mmbtu.
  • Awarded Block A Aceh EPC contract to JEC to construct the gas plant facilities. First gas is expected in Q1 2018.

1H16 Financial Key Points

  • Gross profit was US$ 107 million and operating income US$ 58 million. The Company’s EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased by 14% from 1H15 to US$ 121 million, with an improved EBITDA margin up 11% year on year.
  • 1H16 Net Income from continuing operations was US$ 11 million, compared to a US$ 31 million net loss in 1H15.
  • Obtained shareholder approval for the proposed acquisition of a 50% stake in PT Amman Mineral Investama which will acquire an 82.2% interest in PT Newmont Nusa Tenggara. Closing is expected in October 2016.
  • Signed a Sale and Purchase Agreement to acquire Japex’s 16.67% interest in the Block A Aceh PSC. Closing is expected in October 2016.
  • Signed a Share Sale and Purchase Agreement with ConocoPhillips to acquire a 40% participating interest (and Operatorship) in the South Natuna Sea Block B PSC, along with West Natuna Transportation System gas transportation system. Closing is expected in November 2016.
  • Signed a Share Sale and Purchase Agreement to divest a 100% participating interest in Bawean PSC. Closing is expected in Q4 2016.
  • Raised a total of IDR 2.5 trillion through its Shelf Registered IDR bond program. The recent issuance was heavily oversubscribed and the Company will issue another phase of this program in Q4 2016.

Full year guidance for operating costs and capex, excluding acquisitions, remains unchanged. Whilst full year production, excluding acquisitions, is expected to be slightly above the 55 – 60 mboepd range previously advised.

The CEO of MedcoEnergi, Roberto Lorato, said “Amidst the still challenging industry environment, MedcoEnergi is continuing to renew the Company’s asset portfolio. Our focus now will be to successfully complete these acquisitions and to integrate them into our organization. The operational performance of our producing assets continues to improve while our Block A Aceh development is on schedule and under budget.”

The President Director of MedcoEnergi, Hilmi Panigoro, remarked the strategic nature of the recent acquisitions is in line with our ambition to become the leading independent player in the Indonesian natural resources sector.

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MedcoEnergi and ConocoPhillips Sign Share Sale and Purchase Agreement for South Natuna Sea Block B

Jakarta, 19 September 2016 – PT Medco Energi Internasional Tbk (“MedcoEnergi" or the “Company”) has signed a share Sale and Purchase Agreement (“SPA”) to acquire ConocoPhillips Indonesia Inc. Ltd. (“CIIL”) and ConocoPhillips Singapore Operations Pte. Ltd. (“CSOP”), both subsidiaries of ConocoPhillips (“COP”).

CIIL is the Operator of the South Natuna Sea Block B PSC (“SNSB”) with a 40% working interest and is the Operator of the West Natuna Transportation System (“WNTS”). CSOP operates the Onshore Receiving Facility (“ORF”) in Singapore. The WNTS infrastructure together with the Malaysian pipeline is, and will continue to be the focal point for the commercialization of existing discoveries and ongoing exploration activities within the Natuna area. The transaction is expected to complete in Q4 2016.

Roberto Lorato, CEO, said that “Once effective, this acquisition will add substantial gas and liquids reserves and increase MedcoEnergi’s daily production by over 35%. With solid cash flows despite the current low oil price, the transaction is immediately accretive. Above all, we acknowledge SNSB’s world class operating scale and infrastructure, it’s highly experienced and proven operating team and best-in-class health, safety, and environmental record. We look forward to integrating the asset into MedcoEnergi’s upstream portfolio.”

Hilmi Panigoro, President Director, commented that, “As a national private oil and gas company, we continue to seek opportunities to grow MedcoEnergi’s contribution to the Indonesian economy. This transaction will strengthen MedcoEnergi’s footprint in Indonesia and significantly enhance its upstream oil and gas capabilities through the integration of world-class offshore operations.”

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MedcoEnergi Sells Its 100% Interest in Bawean PSC

Jakarta, September 5, 2016 – PT Medco Energi Internasional Tbk and its subsidiary Medco Bawean (Holding) Pte Ltd (together as “MedcoEnergi” or the “Company”), have entered into a Sale and Purchase Agreement dated 1 September 2016 with Hyoil (Bawean) Pte Ltd (“Hyoil”), to divest 100% interest in Bawean PSC through the sale of shares in Camar Resources Canada Inc (“CRC”) and Camar Bawean Petroleum Ltd (“CBPL”). Bawean PSC is an offshore oil producing asset located off the coast of East Java, 1H 2016 production from Bawean was approximately 670 bopd.


The Company has operated the Bawean PSC since 2004 through its holding in CRC. The Bawean PSC will expire in 2031 following the 20 year contract extension granted by the Government of Indonesia in 2010.


Roberto Lorato, CEO, said that “This divestment is aligned with our plans to rationalize our portfolio in order to focus on higher growth assets. The divestment will create value for both MedcoEnergi and HyOil shareholders. HyOil is better placed to further explore and develop Bawean PSC and will do so with the support of an experienced team.”

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MedcoEnergi AGMS & EGMS Continue to Deliver Energy in the Challenging Year of Oil and Gas Industry

Jakarta, 30 June 2016 - PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") yesterday held the Annual General Meeting of Shareholders (AGMS) and an Extraordinary General Meeting of Shareholders (EGMS). 

The AGMS approved the 2015 Annual Report and 2015 Audited Consolidated Financial Statements of the Company, appointed Independent Public Accountants who will audit the Company’s Financial Statement for the year ended 31 December 2016, fixed the remuneration of the BOD and the BOC for the period of January – December 2016 and elected the Board of Commissioners and Board of Directors.

MedcoEnergi released its 2015 financial results on March 31st and a copy of the Press Release is available on its website.

At the EGMS the Shareholders also approved the implementation of a Management, Director and Employee Stock Ownership Program with share allocations from existing Treasury shares.  With this Program the Company will aim to align the interests and motivation of Shareholders, Directors and Employees of the Company.

On 30 June 2016 the Company  released its Q1 Audited Financial Results.  A copy of the Press Release is reproduced below and is also available on the Company’s website.

MedcoEnergi CEO Roberto Lorato said "As we know 2015 was a difficult year but we have made a strong start to 2016 with the release of our 2016 Q1 results.   I am also very pleased by the strong support demonstrated by our Shareholders towards our efforts to make MedcoEnergi and ever stronger and more competitive company.”

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MedcoEnergi Leads “Indonesia, Inc.” to Bring Back Indonesia’s Strategic Assets from Newmont

Jakarta, June 30, 2016 – PT Medco Energi Internasional Tbk (“MedcoEnergi”) is pleased to announce that it has agreed to acquire a controlling stake in PT Amman Mineral Internasional (“AMI”) which controls 82.2 percent of PT Newmont Nusa Tenggara (NNT)for USD 2.6 billion.  AMI has just recently purchased NNT from Newmont Mining Corporation and Sumitomo Corporation, recording one of the largest structured finance deals in South East Asia this year.

Hilmi Panigoro, President Director of MedcoEnergi, remarked that, “This transaction is immediately accretive for MedcoEnergi given NNT’s world scale operation.  We are committed to maintaining high standards in safety, environmental stewardship and social responsibility, and high quality workforce that are the foundation of MedcoEnergi’s operational success to date. This will strengthen MedcoEnergi position as Indonesia’s premier independent energy and natural resources company, and reaffirms our commitment to contribute to national development.”

MedcoEnergi Group Chairman Muhammad Lutfi says “This transaction is strategic not only for MedcoEnergi Group but also for setting two new important precedents for Indonesian and international investors. First this deal proves that with the collaboration of Indonesian companies, state-owned banks, government and the public at large would bring solution to every challenge the country faces. Secondly, Newmont and Sumitomo deserve a lot of praise for setting a new precedent for international investors in the natural resource sector that being cooperative and supportive towards realizing the aspiration of the people can only mean good for everybody.”

MedcoEnergi Group and AP Investment join forces to acquire controlling stakes in AMI with the support of Indonesia’s three largest state-owned banks namely Bank Mandiri, BNI and BRI with transaction structure that is sophisticated and rare by Indonesian banking practice.

“I am honored to witness and learn firsthand from the country’s best bankers. The sophisticated structure that the three state-owned banks applied in this transaction is expected to bring more similar and equally important transaction in the future,” said Hilmi Panigoro.

AP Investment is led by Agus Projosasmito, Indonesia’s seasoned investment banker and former President Director of Danareksa Securities. Agus made his reputation by spearheading and co-founding the country’s most memorable deals. This includes the formation of Star Energy with the acquisition of Conoco Phillips off-shore operation in Natuna in 2002 and the acquisition of Wayang Windu – a geothermal leading company – from Credit Suisse and Deutsche Bank in 2004.

MedcoEnergi founder Arifin Panigoro could not be happier. “I feel blessed because for the many times Medco Energi Group reaffirms its main characteristic as a pioneer that would open new frontier for the industry and the country. We cannot thank the government more for the shared vision and the great support.

Completion of the transaction is contingent upon obtaining both Government and MedcoEnergi shareholders approvals. 

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MedcoEnergi Announces its Audited 1Q 2016 Financial Results

SUMMARY OF 1Q 2016 PERFORMANCE

Operational

·         Average production of 64.5 MBOEPD (49.9 MBOEPD in 1Q15)

o    Oil Production – 30.7 MBOPD (31.1 MBOPD in 1Q15)

o    Gas Production – 197.6 MMSCFD (109.9 MMSCFD in 1Q15)

·         Increase in production volume by 29.3%

·         Lematang PSC awarded 10 years extension and increased working interest to 100%

·         EPC Contract for Block A, Aceh has been awarded to JEC

·         Acquisition of Japex’s 16.67% interest in Block A, MedcoEnergi to hold a total of 58.33% interest

 

Financial

·         EBITDA of US$65 million

·         Net profit of US$10 million

·         Oil and Gas operating cash costs reduced by 7%

·         Solid liquidity with cash and cash equivalent of US$ 400 million

 

 

Jakarta, 30 June 2016 – Today, PT Medco Energi Internasional Tbk has announced its audited consolidated financial statements for the period ending 31 March 2016 (“1Q 2016”).

Hilmi Panigoro, President Director of MedcoEnergi stated that “Despite the continuing difficult price environment, our 1Q 2016 performance is on track to meet our 2016 operational and financial targets. Production in 1Q 2016 has been strong and our cost efficiency efforts are becoming evident in our results.”

Operational Highlights in 1Q 2016

  • Production volume was 29.3% higher than in 1Q 2015 at 64.5 mboepd.The increase in production volume was mainly attributed to the additional contribution of Senoro-Toili Gas field which started operation in June 2015 and in 1Q 2016 produced a total of 102.5 mmscfd of gas. Oil production decline in mature fields continues to be successfully mitigated through focused production optimization.
  • MedcoEnergi announced several milestones in the development of its Major Projects:
    • In Lematang PSC, South Sumatra the Company was awarded a 10 year extension and increased its working interest to 100% with the completion of the Lundin acquisition.
    • In Block A PSC, Aceh the Company awarded the Engineering Procurement and Construction (EPC) contract for the Phase 1 gas project development to a consortium of PT JGC Indonesia and PT Encona Inti Industri (JEC).
    • The Company entered into an agreement to acquire Japex Block A Ltd’s 16.67% interest in the Block A PSC. Upon completion MedcoEnergi will hold a 58.33% operating interest in the block.

Financial Highlights in 1Q 2016

  • MedcoEnergi’s average realized oil price for the period was US$ 30.6/bbl per barrel or 40% lower compared to 1Q 2015, whilst average realized gas price was US$ 4.14/mmbtu.
  • Total revenue was booked at US$ 144.6 million or 13% higher compared to 1Q 2015. 
  • The Company lowered operational oil and gas cash costs by 7% from US$ 59 million in 1Q 2015 to US$ 55 million in 1Q 2016, with unit production cash costs at US$ 6.9/boe.
  • Gross profit recorded at US$ 58 million and operating income of US$ 34 million. The Company’s EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)  increased by 45% to US$ 65 million, with an improved EBITDA margin up from 35.4% to 45.3% year on year.
  • 1Q 2016 the Company booked net profits from operations of US$ 10.3 million, compared to the net loss of US$ (37.4) million in 1Q 2015.

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