Bringing Back Indonesia’s Strategic Assets from Newmont

Amman Mineral Nusa Tenggara, West Sumbawa, Indonesia

The acquisition of this asset marks a monumental milestone for MedcoEnergi and our stakeholders including the Indonesian government. We commit to maintain the world-class standards of safety, environmental stewardship and social responsibility, as well as high quality workforce.

World-class offshore operations

South Natuna Sea Block B, Riau, Indonesia

An offshore PSC located in the South Natuna Sea with a large hydrocarbon base and best in class Health, Safety, and Environmental records. With the asset integration into MedcoEnergi’s portfolio through acquisition, it will enhance the Company’s capabilities and scale as a world class offshore operating Oil and Gas Company.

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.

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

17/07/2018
MEDC-IDX
(IDR)
920
Market Cap
(Trilion IDR)
16.3
Volume
(lot)
142,088

Whistleblower

Ensuring MedcoEnergi is a safe, fair and honest place to work.
Tuesday, 17/07/2018 WIB MedcoEnergi Results of Bondholder's Meeting

PT Medco Energi Internasional Tbk held Bondholder Meetings on Monday 16th and Tuesday 17th July 2018.

Monday, 14/05/2018 WIB MedcoEnergi Results of Annual and Extraordinary General Meeting of Shareholders

MedcoEnergi held its Shareholder Annual and Extraordinary General Meeting (AGMS and EGMS) on Monday 14 May 2018.

Tuesday, 08/05/2018 WIB MedcoEnergi Announces Commercial Operation of Sarulla Geothermal’s Third Unit

MedcoEnergi announced today the commercial operation of the third and final unit in the phase one development of the Sarulla Geothermal Power ...

Thursday, 03/05/2018 WIB MedcoEnergi Announces 1Q 2018 Results

PT MedcoEnergi Internasional Tbk announces its financial results for the quarter ending 31 March 2018.

Wednesday, 11/04/2018 WIB MedcoEnergi Announces its Audited 2017 Results

MedcoEnergi announced a net profit of US$127.1 million and a 31.5% year-on-year increase in oil and gas production volumes for the year ended 31 December 2017.

Thursday, 29/03/2018 WIB Medco Daya Abadi Lestari Consolidates Ownership in MedcoEnergi

PT Medco Daya Abadi Lestari has consolidated the Panigoro family shareholding in MedcoEnergi and now holds over 50% equity interest in MedcoEnergi

Friday, 26/01/2018 WIB MedcoEnergi Wins “Upstream Company of the Year”

MedcoEnergi has received the “Upstream Company of the Year” award for 2017, at the recently concluded ceremony by the APAC Energy Council, January 24, 2018, held in ...

Thursday, 25/01/2018 WIB MedcoEnergi Issues US$ 500 Million 7NC4 Bond

MedcoEnergi announced its successful issuance of 7NC4 bond for US$ 500 million, with seven year tenor and final coupon of 6.75%.

Friday, 05/01/2018 WIB MedcoEnergi Announces its Audited 9M 2017 Results

MedcoEnergi announces net profit of US$164.3 million and a 38.3% increase oil and gas production volumes for the period ending 30 September 2017.

Thursday, 21/12/2017 WIB MedcoEnergi Successfully Closed Trading Period of Fully Underwritten Rights Issue

The target proceeds of IDR 2,640 billion (~US $195million) were oversubscribed by ~45%.

MedcoEnergi Results of Bondholder's Meeting

Jakarta, 17 July 2018 - PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") held Bondholder Meetings (“Meeting”) on Monday 16th and Tuesday 17th July 2018.

The meeting was held to approve the alignment of Medco Energi International Shelf-Registered IDR Bond II Trust Deed with other instruments. With the amendment, the Company will maintain a Debt to Equity ratio of no more than 3:1; and EBITDA to Net Financial Charges ratio not less than 1:1.

Roberto Lorato, Director and CEO of PT Medco Energi Internasional Tbk, said "This is an administrative change and we are grateful to bondholders for their approval. The commodity price environment remains strong and with Sarulla unit III and our Aceh project ramping up production we have strong operating cash flows. With the approvals from the Meetings we expect to continue the steady improvement in our capital structure and operating performance.”

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MedcoEnergi Results of Annual and Extraordinary General Meeting of Shareholders

Jakarta, 14 May 2018 - PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") held its Shareholder Annual and Extraordinary General Meeting (AGMS and EGMS) on Monday 14 May 2018.

At the EGMS Shareholders approved a Capital Increase Without Pre-emptive Rights for up to ten percent of the Company’s issued and paid-up capital. The issue will be completed within two years for minimum price of Rp1,305 per share, being the average closing price for the previous 25 trading days prior to the announcement. The proceeds from the issue will be used for general corporate purposes, including capital structure improvement, working capital or future investment. 

Shareholders also approved a share buyback program, to support the Company’s Employee and Management Share Ownership Program.

During the AGMS Shareholders approved the Company’s 2017 Annual Report and Audited Consolidated Financial Statements, appointed the registered Public Accounting Firm Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) to audit the Company’s Financial Statements for the year ended 31 December 2018, and fixed the remuneration of the BOD and the BOC for the period of January – December 2018.

Hilmi Panigoro, President Director of PT Medco Energi Internasional Tbk, said "2017 was a successful year for the Company. A year characterized by the successful integration of the large previous acquisitions and the substantial improvement in our operational performance and capital structure. With the approvals from the EGMS today, we expect to continue the steady improvement in our performance and continue to deliver upon our commitments to stakeholders.”

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MedcoEnergi Announces Commercial Operation of Sarulla Geothermal’s Third Unit

Jakarta, 8 May 2018 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or “the “Company”) announced today the commercial operation of the third and final unit in the phase one development of the Sarulla Geothermal Power Project (“Project”). Commercial operation of the Project’s first and second units began on 18 March 2017 and 2 October 2017 respectively.

The Project is the world’s largest single-contract geothermal power plant and is located in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency, North Sumatra Province, Indonesia. The U$1.7 billion project generates approximately 330MW, enough to power 2.1 million Indonesian households. The Project is sponsored by a consortium of Medco Power Indonesia, ITOCHU Corporation, Kyushu Electric Power Co., INPEX, and Ormat Technologies

Hilmi Panigoro, President Director of MedcoEnergi, said “I am very pleased with the completion of this 330MW Sarulla Geothermal Power Project, it demonstrates the Company’s continued support to Indonesia’s economic development and our commitment to deliver value to our stakeholders.”

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MedcoEnergi Announces 1Q 2018 Results

SUMMARY 1Q 2018 PERFORMANCE

Operational

  • Average production 85.5 mboed
    • Oil production 33.9 mboed, gas production 274.1 mmscfd
    • Cash costs of US$8.3 per boe

Financial

  • EBITDA US$148.0 million 41.1% higher than 1Q 2017
  • Gross profit of US$151.6 million, 43.7% higher than 1Q 2017
  • Annualized net debt to EBITDA of 3.2x (3.5x incl. MPI)
  • Strong liquidity with cash, cash equivalents including restricted cash of US$633.8 million

 

Jakarta, 3rd May 2018 – PT MedcoEnergi Internasional Tbk (“MedcoEnergi” or the “Company”) announces its financial results for the quarter ending 31 March 2018 (“1Q 2018”).

Roberto Lorato, CEO of MedcoEnergi, said “Along with our 1Q 2018 results we are pleased to announce the new gas discovery in South Sumatra which will increase our gas reserves and production for the domestic market. The integration of Medco Power Indonesia is progressing well and we expect to further leverage the Company’s gas portfolio and technical skills to capture the substantial growth opportunities in this sector.”

Operational Highlights

  • Oil and Gas production in 1Q 2018 was 85.5 mboepd, higher than the fourth quarter 2017 and above 2018 full year guidance but 6% below first quarter 2017 due to lower demand from gas customers.
  • Production from MPI in 1Q 2018 was 593 GWh, 36% above first quarter 2017 following commercial operation of the Sarulla geothermal development unit I and II in March and October 2017. The third and final unit of the phase one development is expected to reach commercial operation by mid-May.
  • The Company is pleased to announce a new gas discovery at its Nowera-1 exploration well in South Sumatera. The well spudded in February and flowed commercial volumes after penetrating 120 feet of gas bearing carbonate in the Baturaja Formation. Further testing and appraisal will be conducted to determine the resource size prior to commercialization.
  • The Block A Aceh gas development is on schedule and budget with commissioning gas achieved on 25th March. The field will reach its full 58 bbtud capacity by the end of the second quarter.
  • PT Amman Mineral Nusa Tenggara (“AMNT”) the Company’s mining affiliate continues to generate earnings from its stock-pile following completion of phase-6 in 2017. Phase-7 development of the Batu Hijau mine and appraisal drilling on the Elang resource continues to ramp up.


Financial Highlights

  • Revenue of US$288.9 million was 36% higher than the first quarter 2017 due to higher realized prices for oil, US$63.3 per bbl (+22.7%) and gas US$5.7 per mmbtu (+3.6%). MPI contributed 19.7% of the Company’s first quarter revenue, with an average selling price of US$4.41 cents/kwh higher than the first quarter 2017 (+59.1%).
  • Cash costs continue to be a focus area with unit cash costs of US$8.3 per boe in line with Company’s focus to maintain cash cost of below US$10.0 per boe.
  • The Company recorded gross profit of US$151.6 million, 43.7% higher than first quarter 2017 with a gross margin of 52.5%, higher than the 49.6% in first quarter 2017.
  • The Company recorded EBITDA of US$148.0 million, 41.1% higher than first quarter 2017 with an improved EBITDA margin of 51.2%, higher than the 49.3% in the first quarter 2017.
  • The Company booked net profit of US$21.6 million, compared to US$43.1 million in first quarter 2017. Excluding ~US$20 million of non-recurring gains in the first quarter 2017, first quarter 2018 net profit was impacted by lower gas demand and the completion of AMNT phase-6 in Q3 2017.
  • In January 2018 the Company raised US$500 million through a US$ bond with a seven-year tenor and 6.75% coupon. Net of restricted cash first quarter debt was essentially flat at US$2.5 billion. Annualized net debt to EBITDA improved to 3.5x and 3.2x excluding Medco Power.
  • AMNT continues to progress towards an IPO and the Company diluted its interest in AMNT to 32.3% during the first quarter. AMNT is in negotiations for additional cash injections, which may result in further dilution of the Company’s interest.


Hilmi Panigoro, President Director MedcoEnergi, said “This is a good start for 2018, despite temporary lower gas demand from some of our customers. In the second quarter of 2018, our focus is now to safely complete the phase I development and commissioning of Block A Aceh and the integration of MPI. With an improving commodity price environment and our stronger financial position we will continue our plans to invest in the future.”

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MedcoEnergi Announces its Audited 2017 Results

SUMMARY OF 2017 PERFORMANCE

Operational

  • Oil and gas production volumes increased 31.5% year-on-year
  • Average production 86.8 MBOEPD (66.0 MBOEPD in 2016)
    • Oil Production – 35.1 MBOPD
    • Gas Production – 278.0 MMSCFD
    • Unit costs of US$9.1/BOE

Financial

  • EBITDA of US$434.2 million (US$267.7 million in 2016)
  • Net profit of US$127.1 million (US$184.8 million in 2016)
  • Net debt to EBITDA of 3.7x (ex. MPI) and back to the level in 2014
  • Strong liquidity with cash and cash equivalents and including restricted cash of US$635 million

 

Jakarta, 11 April 2018 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announced a net profit of US$127.1 million and a 31.5% year-on-year increase in oil and gas production volumes for the year ended 31 December 2017 (“2017”).

Roberto Lorato, CEO, said “We are pleased with these results, which reflect solid operating performance achieved while delivering a complex set of business efficiency programs, including the integration of the South Natuna Sea offshore assets.”

Operational Highlights

  • Oil and Gas production of 86.8 MBOEPD was 31.5% higher year-on-year, driven by strong performance from the South Natuna Sea fields following its acquisition in the fourth quarter of 2016, as well as continued higher production from the Senoro field, and lower decline in the South Sumatra and Rimau fields. The Company’s 2017 annual, and three-year-average Reserve Replacement Ratio (RRR) were both approximately 1.3x.
  • The Block A Aceh project is on schedule and budget with commissioning gas achieved on 25 March 2018, the field will ramp up to its full 58 BBTUD capacity during the second quarter.
  • During the fourth quarter of 2017 the Company increased its ownership in Medco Power Indonesia ("MPI”) from 49.0% to 88.6%, and began consolidating MPI in its financial statements. Positioned as a national power company focusing on gas- and renewable- clean energy power plants, MPI operates plants with a gross generating capacity of 526MW and provides operations and maintenance services to plants generating 2,150MW. The Company expects to generate significant future synergies from its portfolio of operated gas fields, LNG facilities and new MPI gas fired power plants. MPI’s short-term focus however is to complete the Pusaka mini-hydro and Sarulla Unit 3 geothermal facilities, both of which are expected to reach commercial operation in the second quarter 2018.
  • In 2017 PT Amman Mineral Nusa Tenggara (“AMNT”), the Company’s mining affiliate completed its smelter feasibility studies and repaid both the senior and mezzanine acquisition debt facilities. In the fourth quarter AMNT began development of phase-7 of the existing Batu Hijau mine from its own cash resources, and subsequently secured further financing for the development. In 2017 appraisal drilling of the Elang discovery continued and this has enabled AMNT to increase Elang’s expected resource size.


Financial Highlights

  • Full-year revenue rose to US$925.6 million, increased 56.9% year-on-year due to both higher production and stronger commodity prices. Average realized prices were US$51.5/BBLS (+21.9% year on year) for oil and US$5.5/MMBTU (+25.7% year on year) for gas. Revenue from MPI contributed 7% of the Company’s total 2017 revenue following consolidation in the fourth quarter.
  • The Company continues to focus on efficiency with 2017 unit cash costs of US$9.1/BOE, lower than the Company’s commitment to keep cash costs below US$10/BOE through 2020.
  • As a result EBITDA jumped 62.2% year on year to US$434.2 million, with an improved EBITDA margin of 46.9% (45.4% in 2016). Net debt to EBITDA was 3.7x in 2017 excluding MPI, and 4.6x including MPI; both well below the 6.5x in 2016.
  • On the bottom line, the Company booked a net profit of US$127.1 million, compared to US$184.8 million in 2016. Full year 2017 results included several non-recurring charges and expenses against profit including pre-sale adjustments on assets held-for-sale, and the Company’s net profit share of AMNT interest and financing charges for the repaid acquisition and mezzanine debt (US$62.3 million), unwind costs for price hedges (US$135.7 million) and early termination packages for permanent and contract employees terminated in 2017 (US$20.4 million).
  • In the fourth quarter 2017 the Company completed a 1 for 3 rights issue raising approximately US$195 million with approximately US$200 million from attached warrants expected to be exercised from July 2018 onwards.

Hilmi Panigoro, President Director, said “The Company performed very well in 2017 despite a volatile environment, and we are well-positioned to remain competitive in the years to come. The recent successful corporate actions, including the acquisition of a controlling interest in MPI, issuing a second USD bond and completing our rights issue have strengthened our capital structure and provided value to our shareholders.”

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Medco Daya Abadi Lestari Consolidates Ownership in MedcoEnergi

PT Medco Daya Abadi Lestari (“Medco Daya”), a shareholder of PT Medco Energi Internasional Tbk (“MedcoEnergi” or “the Company”) has advised the Company that effective since 28 March 2018, it has consolidated the Panigoro family shareholding in MedcoEnergi under its own name and now Medco Daya holds over 50% equity interest in MedcoEnergi.

The consolidation was effected through a crossing of 7,523.96 million shares of MedcoEnergi collectively from Encore Energy Pte. Ltd. and Clio Capital Ventures Ltd. to Medco Daya. The shares have been crossed on the Indonesia Stock Exchange through a negotiated market settlement with an average price of IDR 1,357 per share and the current crossing of shares has not resulted in any change in control over MedcoEnergi.

Medco Daya is wholly owned by members of The Panigoro Family controlled by Bapak Arifin Panigoro.

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MedcoEnergi Wins “Upstream Company of the Year”

JAKARTA, 26 January 2018 – PT Medco Energi Internasional Tbk (“MedcoEnergi”) is pleased to announce that the Company has received the “Upstream Company of the Year” award for 2017, at the recently concluded ceremony by the APAC Energy Council, January 24, 2018, held in Singapore.

MedcoEnergi was shortlisted amongst all the upstream companies in the Asia Pacific region and made it to the final shortlist of 3 nominees which included two foreign energy companies from Australia and Singapore.

In 2017 also, MedcoEnergi received two awards for “Deal of the Year” for the acquisition of the 40% operated interest in South Natuna Sea Block B and “Executive of the Year” awarded to given to our CEO, Roberto Lorato.

Ronald Gunawan, Director & COO of the Company, said “In 2017, MedcoEnergi transformed itself into an integrated offshore and onshore E&P Company through the acquisition of the operated 40% interest in South Natuna Sea Block B. We have been able to integrate the new asset seamlessly, without business interruption, while maintaining safe operations. We consolidated our various operating environments with greater efficiencies and have achieved current production costs of less than US$ 10 / BOE, hence continuing to deliver greater value for our stakeholders."

For more Background on the Council, their website is www.energycouncil.com

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MedcoEnergi Issues US$ 500 Million 7NC4 Bond

JAKARTA, 25 January 2018 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce the successful issue of an eight times oversubscribed 7NC4 144A/Reg S bond for US$ 500 million, seven year tenor with a final coupon of 6.75%.

Moody's upgraded its B2 issuer rating outlook for the Company to Positive from Stable while Fitch and Standard & Poor’s reaffirmed their B Stable issuer ratings. The Company intends to use the net proceeds from the bond to repay certain indebtedness.

Roberto Lorato, CEO of MedcoEnergi, said “The strong demand from bond investors reflects the Company’s record of consistent delivery on its commitments, both our operational performance and deleveraging plans. We have delivered higher than budgeted oil and gas production, sustained our cost efficiency measures and most recently successfully executed a rights issue.”

Hilmi Panigoro, the President Director of MedcoEnergi, remarked “We are pleased with the final outcome of the bond issue, and also the credit rating outlook upgrade which reflects the confidence in our company. We will continue to deliver on our plans for the benefit of all our stakeholders.”

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MedcoEnergi Announces its Audited 9M 2017 Results

SUMMARY OF 9M 2017 KEY PERFORMANCE 

Operational

  • Oil and gas production volumes increased 38.3% year-on-year
  • Average production was 88.3 MBOEPD (63.9 MBOEPD in 9M 2016)
    • Oil Production – 35.5 MBOPD
    • Gas Production – 283.6 MMSCFD
    • Unit costs of $8.1/BOE below the commitment to sustain cash costs sub $10/BOE

Financial

  • EBITDA of US$310.9 million (US$180.11 million for 9M 2016)
  • Net profit of US$164.3 million (US$149.61 million loss for 9M 2016)
  • Net debt reduced 5% from year end 2016
  • Strong liquidity with cash, cash equivalents and restricted cash of US$450 million with a further US$180 million of trade receivables.

 

1 Restated figures from unaudited 9M 2016 financial result

Jakarta, 5 January 2018 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announces net profit of US$164.3 million and a 38.3% increase oil and gas production volumes for the period ending 30 September 2017 (“9M 2017”). 

Roberto Lorato, CEO, said “We continue to show strong operating results which, together with our  successful cost efficiency efforts, are now allowing us to see the full benefit of the recently improved commodity prices.” 

Operational Highlights in 2017

  • Oil and Gas production was 88.3 MBOEPD or 38.3% higher year-on-year driven by strong performance from the South Natuna Sea Block B after its acquisition in Q4 2016 and continued high gas sales from Senoro. 
  • The Development in Block A, Aceh is progressing well with overall construction 66.7% complete as of November 2017 with the Central Processing Plant now almost 90% complete. 
  • The Company recently expanded its effective ownership in its power affiliate Medco Power Indonesia ("MPI”), from 49.0% to 88.6%.  MPI is a mid-sized Independent Power Producer (IPP) which currently operates over 526MW of gross installed capacity following the commercial operation of the Sarulla geothermal plant Unit 1 in March 2017 and Unit 2 in October 2017.  MPI results will be consolidated from Q4 2017 onwards. 
  • PT Amman Mineral Nusa Tenggara (“AMNT”), the Company’s mining affiliate, continues to make good progress on the smelter by completing the feasibility studies and is rapidly closing on the completion of its re-financing plans.

Financial Highlights in 9M 2017

  • Total revenue was US$597.5 million, an increase of 52.6% year-on-year due to both higher production and higher commodity prices.  Average realized prices were US$49.5/BBLS (+25.2% year on year) for oil and US$5.5/MMBTU (+31.9% year on year) for gas.
  • The Company recorded a gross profit of US$300.2 million with a 50.2% gross margin. The Company continues to focus on cash costs, with 9M 2017 unit cash costs recorded at US$8.1/BOE, well below the Company’s commitment to remain below US$10/BOE until 2020.  
  • EBITDA increased by 72.6% year on year to US$310.9 million, with an improved EBITDA margin of 52.0% compared to 46.0% in 9M 2016. 
  • The Company booked a net profit of US$164.3 million, compared to last year’s net loss of US$149.6 million.  
  • Annualized net debt to EBITDA was 4.1x (not including restricted cash of US$85mio), well below the 6.3x in 2016 and the lowest level since 2014.

Hilmi Panigoro, President Director, said “I am pleased with our nine-month results as we continue to deliver what we promised to our investors. With the recent successful completion of the rights issue, we have been able to strengthen our capital structure going forward and provide additional value to shareholders.”

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MedcoEnergi Successfully Closed Trading Period of Fully Underwritten Rights Issue

JAKARTA, 21 December 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) successfully closed the trading period for its fully underwritten rights issue. The target proceeds of IDR 2,640 billion (~US $195million) were oversubscribed by ~45%.

The proceeds from the rights issue will be used to repay debt, whilst the proceeds from the exercise of subsequent warrants will be used for working capital and repay debt. The final allotment process together with the refund of excess proceeds will be completed on 27th and 28th December 2017. The first exercise period for warrants will begin on 1 July 2018 with each warrant priced at IDR 625. Further details are available in the Company‘s prospectus filing and newspaper disclosures.

Hilmi Panigoro, President Director of MedcoEnergi, said that, ”I would like to extend my warmest appreciation and gratitude to shareholders, investors, regulators and other stakeholders for their trust and confidence in our business plan as we continue to build shareholder value. The rights issue allows existing shareholders to share in the company‘s recent success and has immediately strengthened the Company‘s capital structure while also providing the foundation for further strengthening as we continue to deleverage”.

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