MedcoEnergi Celebrates its Fortieth Anniversary

We Are 40 Years Young!

From its beginning in 1980 as the first Indonesian drilling services company, MedcoEnergi has evolved into an energy and natural resources company listed on the Indonesia Stock Exchange with three key business segments: Oil & Gas, Power, and Copper Mining. Our commitment to a sustainable future is underpinned by three key pillars: Leadership of & by Our Employees, Environmental & Social. Development, and Local Community Empowerment.

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.

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.

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.

Stock

13/07/2020
MEDC-IDX
(IDR)
460
Market Cap
(Trilion IDR)
8.2
Volume
(lot)
608,352

Whistleblower

Ensuring MedcoEnergi is a safe, fair and honest place to work.
Thursday, 25/06/2020 WIB MedcoEnergi Results of Annual General Meeting of Shareholders

MedcoEnergi held its Annual General Meeting Shareholders (AGMS) on June 25, 2020.

Tuesday, 09/06/2020 WIB MedcoEnergi Remains Optimistic To Operate During Pandemic

Entering its 40th year, MedcoEnergi is determined to successfully face the challenges caused by the COVID-19 pandemic.

Thursday, 21/05/2020 WIB MedcoEnergi Announces Its Audited 2019 Results

MedcoEnergi announces its audited 2019 consolidated report for the period ending 31 December 2019

Monday, 20/01/2020 WIB MedcoEnergi Issues US$650 Million Bond

MedcoEnergi announced the successful issue of a 6x oversubscribed seven-year tenor 144A/Reg S US$650 million bond with a 6.375 % coupon.

Monday, 06/01/2020 WIB MedcoEnergi Announces Audited Nine Month 2019 Results

PT Medco Energi Internasional Tbk announces its Audited results for the nine months ending 30 September 2019.

Tuesday, 17/12/2019 WIB MedcoEnergi Announces On-stream of Phase 4B Oil Development Project in Bualuang, Thailand

MedcoEnergi announces first oil from the Phase 4B Development Project on Bualuang concession in Thailand.

Friday, 02/08/2019 WIB MedcoEnergi Announces First Half 2019 Results

PT Medco Energi Internasional Tbk announces its financial results for the six months ending 30 June 2019.

Wednesday, 22/05/2019 WIB MedcoEnergi Announces Completion of Acquisition of Ophir Energy plc

MedcoEnergi today announces the successful completion of the acquisition of Ophir Energy plc in a recommended all cash offer valued at £408.4 million.

Saturday, 18/05/2019 WIB MedcoEnergi Announces First Quarter 2019 Results

PT Medco Energi Internasional Tbk announced its financial results for the quarter ending 30 March 2019 (“1Q 2019”).

Monday, 06/05/2019 WIB MedcoEnergi Issues US$650 Million 7NC4 Bond

MedcoEnergi is pleased to announce the successful issuance of a seven year 144A/Reg S US$650 million (7NC4) bond with a 7.375% coupon

MedcoEnergi Results of Annual General Meeting of Shareholders

Jakarta, 25 June 2020 – PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") held its Annual General Meeting Shareholders (AGMS) on June 25, 2020.


The Shareholders approved the Company’s plan to issue a maximum of 7,500,000,000 (seven billion five hundred million) new shares associated with a Pre-Emptive Rights Issue planned for third quarter of 2020. The Shareholders also approved the customary agenda items to appoint Auditors for the year 2020, approve the Annual Report and Audited Financial Statements for the year ended December 31, 2019 and approve the remuneration for the Board of Commissioners and Board of Directors for the year 2020.


Hilmi Panigoro, President Director of MedcoEnergi said, "We delivered solid results in 2019 and the Ophir acquisition was immediately accretive to our financial performance. In 2020, our 40th anniversary, the world and our industry are facing extraordinarily challenging times because of the coronavirus pandemic and the low oil price environment. Our focus is of course on safeguarding the well-being of our people, while also minimizing the impact to our business. We will remain vigilant and prepare for any eventuality in order to continue to deliver commitments to our stakeholders”.

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MedcoEnergi Remains Optimistic To Operate During Pandemic

Jakarta, 9 June 2020 - Entering its 40th year, MedcoEnergi is determined to successfully face the challenges caused by the COVID-19 pandemic. The Company continues to prosper by focusing on its three core business segments in Oil & Gas, Power, and copper and gold Mining. Through the acquisition of Ophir Energy plc in 2019, MedcoEnergi is currently recognized as a leading natural resources company in Southeast Asia with oil and gas production above 100,000 boe per day.

The Company is committed to maintaining workplace safety, business continuity and complying with the Government’s COVID-19 health and safety protocols. The Company has supported the communities in which it operates in their fight against COVID-19 by donating billions of rupiah from both Company funds and employee contributions which have been distributed by the Medco Foundation. Medical supplies and other essentials have been distributed as well as laboratory facilities at Dharmais Cancer Hospital.  This facility was built to support the government and the community to accelerate the results of COVID-19 test.

MedcoEnergi's President Director Hilmi Panigoro stated, "We are facing challenging times. The rapid decline in demand for energy in the face of increasing oil production is a challenge for the industry. But, with determination and experience, and our commitment to social and environmental responsibility, MedcoEnergi will support the government to maintain energy supplies while continuing to prosper as it has done during the first 40 years of its journey".

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MedcoEnergi Announces Its Audited 2019 Results

MedcoEnergi Announces Its Audited 2019 Results

Summary Result

  Financial    

  • Consolidated EBITDA US$660 million, pro forma Ophir US$802 million.
  • Consolidated Gross Profit US$592 million, pro forma Ophir US$667 million.
  • Net Debt to EBITDA1 3.4x, pro forma1 Ophir 2.8x.
  • Strong liquidity with cash and cash equivalents US$596 million.

 Operational

  • Oil and gas production 103 mboepd, pro forma Ophir 115 mboepd.
  • Medco Power generated sales of 2,600 GWh.
  • Oil and gas cash production cost US$9.3 per boe

Jakarta, 20 May 2020 – PT Medco Energi Internasional Tbk2 announces its audited consolidated financial statements for the year ended 31 December 2019 (“2019”).

Roberto Lorato, CEO, said “Last year was dominated by the successful acquisition of Ophir Energy Plc.  This year, 2020, will be remembered for the global spread of Covid-19 and the unprecedented collapse in oil prices.   MedcoEnergi has responded quickly to these new challenges with protocols to ensure the well-being of our staff, and over US$200 million of expenditure deferrals and reductions to preserve cash and support our balance sheet.”

Financial Highligths

  • A new Rights Issue will be proposed at the General Shareholders Meeting in June. Further information will be announced separately.
  • EBITDA US$660 million, gross profit US$592 million with Pro forma Ophir EBITDA was US$802 million.
  • The immediately accretive Ophir acquisition produced seven months EBITDA US$131 million, after one-time acquisition costs of US$35 million and integration costs of US$11 million. Pro forma the Ophir EBITDA was US$238 million.  Recurring annual synergies from the acquisition will be above US$50 million.
  • Net Income was a US$27 million loss (2018 US$51 million loss), as a result of profits from the Oil and Gas and Power segments, which were offset by larger losses in Amman Mineral Nusa Tenggara (AMNT) US$49 million.
  • Capital expenditures were US$313 million, pro forma USS$356million, in line with guidance.
  • Completed the sale of several non-core assets, including Tunisia, Mexico Block 5, monetized the AMNT shareholder loan and further diluted our interest in 2019 and 2020.
  • Liquidity remains strong with cash and equivalents of US$596 million, with rupiah bond maturities in 2020 and 2021 secured in escrow.
  • Credit ratings were recently reaffirmed at B+ from Fitch, B+ from Standard & Poor, B1 from Moody’s and A+ from Pefindo.
  • Net Debt to EBITDA1 was 3.4x, pro forma 2.8x and below the Net Debt to EBITDA1 target of 3.0x.  Gross Debt1 was US$2.5 billion.

 Operational Highlights

  • Oil and gas production 103 mboepd, 115 mboepd Ophir pro forma.
  • Unit cash costs of US$9.3 per boe, lower than our guidance.
  • Completed the new developments in Bualuang, Thailand and Temelat, South Sumatra and the sub-sea development in Buntal-5, South Natuna Sea.  Progress on the Meliwis gas development, East Java has reached 90% of completion as of May 2020 and first gas is on track for midyear.
  • Completion of the successful Bronang-2 exploration well in Block B, South Natuna.
  • Medco Power generated sales of 2,600 GWh, a 4% decline year on year due to unscheduled maintenance in Sarulla Geothermal operations, North Sumatra.
  • Construction of the Riau CCPP is 76% completed and the project is on track for service in 2021.
  • Medco Power signed two new Operation & Maintenance contracts with PLN in Sulut-1, North Sulawesi and Timor-1, East Nusa Tenggara. 
  • Medco Power also won a tender to construct and operate 2x25MWp Solar PV facilities in Bali and construction has begun on the 26MWp PV facility in Sumbawa.

 

2020 Full Year Guidance 

   With US$200 million of expenditure reductions, guidance for 2020 is as follows:

  • Oil & Gas production of 100 – 105 mboepd.
  • Oil & gas unit cash costs below US$10/boe.
  • Total capital expenditures below US$240million.
  • Power sales of 2,600 GWh.

               

             

Hilmi Panigoro, President Director, said “I am proud to say that, in this our 40th anniversary, the Company has enhanced its strength following the completion of the Block A, Aceh development and the acquisition of Ophir Energy, placing us as a leading Southeast Asian energy and natural resources company. The world is now facing extraordinarily challenging times, and Medco will do what it has always done, adapt to the changing environment and continue to produce safe and affordable energy for the countries in which we operate."

1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)

2PT Medco Energi Internasional Tbk ("MedcoEnergi" or "Company")

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MedcoEnergi Issues US$650 Million Bond

Jakarta, 20 January 2020 – PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") is pleased to announce the successful issue of a six times oversubscribed seven-year tenor 144A/Reg S US$650 million bond with a 6.375 % coupon.

The Company received rating upgrades from B to B+ (Stable) from S&P Ratings and from a B2 to B1 (Stable) from Moody’s, while Fitch affirmed their B+ (Stable) rating. The upgrades reflect sustained improvement in the Company’s performance through improved earnings visibility, increased scale and geographic diversification following the successful acquisition and integration of Ophir Energy plc. The Company also received an MSCI ESG Rating of BB, upgraded from B following the publication of its recent Sustainability Report reflecting continued improvement to achieve its long term sustainability goals.

The Company will use the net proceeds from the recent bond to exercise its right to redeem a USD Bond maturing in 2022 and to repay IDR bonds maturing in 2021. (***)

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MedcoEnergi Announces Audited Nine Month 2019 Results

MedcoEnergi Announces Audited Nine Month 2019 Results

Summary Result

  Financial    

  • Consolidated Gross Profit US$440 million, pro forma Ophir.
  • Consolidated EBITDA US$477 million, pro forma Ophir US$605 million US$472 million. 
  • Annualized Net Debt to EBITDA1 3.9x, pro forma1 Ophir 3.0x 
  • Strong liquidity with cash and cash equivalents of US$575 million.

 Operational

  • Oil and gas production 102 mboepd, pro forma Ophir 117 mboepd.
  • Medco Power generated sales of 1,870 GWh.
  • Oil and gas cash production cost US$9.5 per boe

Jakarta, 6 January 2020, PT Medco Energi Internasional Tbk2 announces its Audited results for the nine months ending 30 September 2019. 

Roberto Lorato, CEO said, “We continue to deliver strong operational performance whilst upgrading our portfolio through selective acquisitions and divestments. The integration of Ophir operations has gone well. The US$50 million synergies we have identified, together with the seamless development of Bualuang, Thailand puts us in a great place for 2020.” 

 Financial Highlights          

  • Completed the purchase and delisting of Ophir Energy plc.  Ophir results consolidated (for the four months) from 1 June 2019.  Pro forma numbers assume combined performance from 1 January 2019.   
  • The Ophir acquisition has been immediately accretive with four months US$65 million EBITDA since 1 June, and one-time acquisition costs of US$35 million and we will realize recurring synergies of over US$50 million per annum from 2020 onwards.
  • Gross Profit US$440 million, EBITDA US$477 million with a 47% margin after the transaction costs.  Pro forma Ophir EBITDA was US$605 million.
  • Completed the sale of oil and gas assets in the USA, Tunisia and Block 5 in Mexico, sold 35% of our interest in the Rimau and South Sumatra Indonesian PSCs and exited deep-water exploration assets in Bangladesh, Vietnam, Equatorial Guinea, Aru and West Papua.  In addition sold a 51% interest in AMG (The Energy building) and diluted our interest in Amman Mineral Nusa Tenggara (AMNT) and Ijen geothermal, East Java.
  • We also acquired 100% of North Sokang PSC in East Natuna where we will drill in 2020, a further 7% in Oman KSF and 11.4% of Medco Power to gain full control.  
  • Liquidity remains strong with cash and equivalents US$575 million and pro forma capex of US$204 million.
  • Net debt to EBITDA1 3.9x, pro forma1 3.0x after debt repayment1 of US$409 million and on track to achieve the target of Net Debt to EBITDA1 of 3.0x and gross debt1 below US$2.6 billion

 

Operational Highlights

  • Oil and gas production 102 mboepd, 117 mboepd pro forma Ophir with unit cash costs of US$9.5 per boe.
  • Bualuang, Thailand, Phase 4B development produced first oil with initial production rates above expectation, at 12,900 bopd.  Upon the completion of the drilling program in mid-2020 production is expected to reach over 14,000 bopd.
  • Progress on Meliwis, the East Java gas development has reached 57% per plan, with off-shore installation completed and first gas on track for mid 2020.
  • Medco Power generated sales of 1,870 GWh, with progress on the Riau Combined Cycle Gas Power Plant at 46%, and on track for an in-service date in Q4 2021.
  • AMNT production from stockpile was 96 Mlbs of copper and 42 Koz of gold. Progress on the fully funded Phase 7 development continues with first production expected mid 2020.

         

2019 Full Year Guidance 

The company’s operational guidance for 2019 is as follows:

  • Production 100 mboepd, Ophir pro forma 110 mboepd 
  • Oil and gas unit cash costs will be maintained below US$10 per boe.
  • Capex Ophir pro forma below US$350 million.
  • Net Debt to EBITDA1 target of 3.0x1or below.

Hilmi Panigoro, President Director, said, “I am pleased to see continued strong operational and financial results. The acquisition of Ophir assets has secured our position as a leading Southeast Asia energy and natural resources company, at a time when the commodities price environment looks to be turning in our favor”.

 

1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”).

2PT Medco Energi Internasional Tbk ("MedcoEnergi" or "Company")

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MedcoEnergi Announces On-stream of Phase 4B Oil Development Project in Bualuang, Thailand

Jakarta, 17 December 2019 – PT Medco Energi Internasional Tbk (MedcoEnergi) announces first oil from the Phase 4B Development Project on the 100% owned Bualuang concession in Thailand.

The project is located in the Gulf of Thailand and comprises a new bridge-linked wellhead platform structure along with the retrofitting of extension structures to the existing platforms. Initial production rates at 12,900 bopd have exceeded expectations and upon the completion of the drilling program in mid-2020 field production is expected to peak at over 14,000 bopd.

Roberto Lorato, CEO said “I am pleased to report that the Phase 4B Development Project has reached first oil, with drilling performance 70 days faster than planned. Especially pleasing is that the project was safely handed over from Ophir in May without safety incident or disruption. Our integration of Ophir Energy plc is proceeding well, with total recurring synergies of around US$50 million per year already identified.”

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MedcoEnergi Announces First Half 2019 Results

Summary Results

Financial

  • Consolidated Gross Profit US$347 million, pro forma Ophir US$400 million.
  • Consolidated EBITDA US$343 million, pro forma Ophir US$450 million.
  • Annualized Net Debt to EBITDA1 3.6x, pro forma Ophir 2.7x.  
  • Strong liquidity with cash and cash equivalents above US$800 million.

Operational

  • Oil and gas production 96 mboepd, pro forma Ophir 120 mboepd.
  • Medco Power Indonesia generated power sales of 1,253 GWh.
  • Oil and gas cash production cost US$9.0 per boe. 

 

Jakarta, 2 August 2019 – PT Medco Energi Internasional Tbk2 announced its audited consolidated financial statements for the year ended 30 June 2019.

Roberto Lorato, CEO said “I am pleased to report our six month results with higher production and strong EBITDA.  These results include the first month of Ophir operations under MedcoEnergi control. Work to integrate the Ophir assets and organization is well advanced and we are making good progress continuing to upgrade the combined Medco and Ophir portfolio.”

 Financial Highlights

  • Completed the purchase and delisting of Ophir Energy plc. Ophir results are consolidated from 1 June 2019.  Pro forma results assume combined results from 1 January 2019. 
  • Ophir integration is on track with the focus now on system, organization and process alignment in order to realize the expected synergies. 
  • Gross Profit US$347 million.  EBITDA US$343 million with a 55% margin.  Pro forma Ophir EBITDA US$450 million up 50% year-on year. 
  • Oil, Gas and Power segments generated Net Income of US$136 million with Consolidated Net Income US$28 million, pro forma Ophir US$41 million. 
  • Liquidity remains strong with cash and cash equivalents of US$838 million. Cash from Operations was US$265 million and capital expenditures were US$63 million.  Pro forma Ophir Cash from Operations and capital expenditures were US$308 million and US$101 million respectively.  
  • Received a rating upgrade from B (Positive) to B+ from Fitch, a B (Positive) from Standard & Poor and Moodys affirmed a B2 (Positive outlook) rating. 
  • Ophir debt of US$355 million was repaid in June and a further US$105 million debt repaid in July.  End June Net debt to EBITDA 3.9x (3.6x excl. Medco Power), pro forma net debt to EBITDA 3.0x (2.7x excl. Medco Power).  All 2019 and 2020 bullet maturities are secured by funds in escrow.
  • Significant progress made to upgrade the portfolio this year with several strategic asset sales and purchases. Cash funded purchase of a further 11.4% interest in Medco Power to achieve 100% control, a further 7% in Oman KSF and expanded East Natuna acreage by purchasing 100% North Sokang PSC.  
  • Disposed of 51% Api Metra Graha, diluted AMNT position, farmed down 49% of Ijen geothermal,  sold 35% Rimau and 35% South Sumatra, 100% of Equatorial Guinea block 24, 100% Aru and West Papua IV and withdrew from Ophir’s deep-water Bangladesh block SS-11 and Vietnam blocks 123 and 124.  
  • Offers from new potential strategic partners for Medco Power are being assessed and the sales of Block 5, Mexico and Tunisia are progressing. 

Operational Highlights

  • Oil and gas production 96 mboepd, 120 mboepd pro forma Ophir with unit cash costs of US$9.0 per boe.
  • Block A, Aceh production and nominations on this recent gas development are stable at 52 – 53 BBtud.   
  • On Bualuang, the Thailand oil development work is progressing with topside installation complete and drilling on track for first oil Q4 2019.   For Meliwis, the East Java gas development, progress has reached 38% with first gas on track for Q2 2020.  
  • Medco Power generated power sales of 1,253 GWh and raised IDR850 billion sharia bonds for refinance and growth. 
  • Riau power plant construction progress has reached 34%, with an expected in-service date of Q4 2021.
  • AMNT production from stockpile was 63.4 Mlbs of copper and 28.4 Koz of gold and continues to progress the Phase 7 development and Smelter FEED.

2019 Guidance

The company’s operational guidance for 2019 is as follows:

  • Production 100 mboepd, Ophir pro forma 110 mboepd  
  • Oil and gas unit cash costs will be maintained below US$10 per boe.
  • MPI will generate power sales of 2,710 GWh.
  • Capex US$350 million, Ophir pro forma US$400 million. 
  • Net Debt to EBITDA target of 3.0x or below.

 

Hilmi Panigoro, President Director, said “I am pleased to see strong operational and financial results. The integration of Ophir operations will continue and secure our position as a leading Southeast Asia energy and natural resources company.”


1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
2PT Medco Energi Internasional Tbk ("MedcoEnergi" or "Company")

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MedcoEnergi Announces Completion of Acquisition of Ophir Energy plc

Jakarta, 22 May 2019 – PT Medco Energi Internasional Tbk1 today announces the successful completion of the acquisition of Ophir Energy plc2 in a recommended all cash offer valued at £408.4 million.

Ophir’s assets are highly complementary to MedcoEnergi’s existing portfolio and the combined business creates a leading regional oil and gas player in Southeast Asia.  The acquisition of Ophir will increase MedcoEnergi’s 2019 pro forma production by approximately 29% to 110 Mboepd, and combined 2P3 reserves and 2C4 resources by 86% to 1,439 MMboe.

Hilmi Panigoro, President Director of MedcoEnergi, said, “We are delighted to have successfully completed the acquisition of Ophir, which firmly establishes MedcoEnergi as a leading oil & gas player in Southeast Asia.  This acquisition further underlines our strategy to selectively expand MedcoEnergi’s presence and we believe it will create value for all of our stakeholders.”           

   
   

2019 Guidance

 

Operational guidance for 2019 is as follows:   

  • Pro-forma production will be 110 Mboepd.
  • Oil and gas unit cash costs will be maintained below US$10 per boe.
  • Medco Power Indonesia will generate power sales of 2,850 GWh.
  • Pro-forma capex will be US$400million or below.
  • Net Debt to EBITDA target will be 3.0x or below at mid-cycle prices.    

                           

 

  

 



1 PT Medco Energi Internasional Tbk (“MedcoEnergi ”or “Company”).

2 Ophir Energy plc (“Ophir”) acquired by MedcoEnergi through Medco Energi Global PTE Ltd. (“Medco Global”) a subsidiary of MedcoEnergi.

3 2018YE 2P reserves: 281.7 MMboe (MedcoEnergi) + 70.1 MMboe (Ophir) = 351.8 MMboe (Combined).

4 2018YE 2C resources: 490.6 MMboe (MedcoEnergi) + 596.6 MMboe (Ophir) = 1,087.2 MMboe (Combined). 

 

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MedcoEnergi Announces First Quarter 2019 Results

Summary Results

  Financial

  • Gross Profit US$172.3 million, 14.2% higher year-on-year.
  • EBITDA US$159.5 million, 8.2% higher year-on-year.
  • Net Income US$28.1 million, 29.7% higher year-on-year.
  • Annualized Net Debt to EBITDA1 3.1x
  • Strong liquidity with cash and cash equivalents above US$540 million.

 

 Operational

  • Oil and gas production 90.5 MBOEPD and above guidance.
  • Medco Power Indonesia sales of 624 GWh, 5.2% higher year-on-year and in line with guidance.
  • Oil and gas unit costs US$7.9 per boe and in line with guidance

Jakarta, 18 May 2019-PT Medco Energi Internasional Tbk2 announced its financial results for the quarter ending 31 March 2019 (“1Q 2019”).

Roberto Lorato, CEO said “These are very strong first quarter results driven by the ramp up of production from our Block A, Aceh field and solid performance from our other assets. The vote of confidence from rating agencies was pleasing, as was almost hitting our Net Debt to EBITDA target despite subdued oil prices of $60/bbl for the quarter.”

 

Financial Highlights
  • Gross Profit was US$172.3 million, 14.2% higher year-on-year, with an improved 60.7% gross margin (52.8% in 1Q 2018).
  • EBITDA was US$159.5 million, 8.2% higher year-on-year, with an improved 56.2% EBITDA margin (51.6% in 1Q 2018) driven by higher gas volumes and higher gas and power prices.
  • Net Income was US$28.1 million 29.7% higher year-on-year. Oil, Gas and Power segments generated Net Income of US$61.0 million up 43.8% year-on-year, more than offsetting non-cash losses in AMNT.
  • Annualized Net debt to EBITDA1 was 3.1x, with realized oil prices of $60.8/bbl and continuing the progression to achieve the 3.0x target at mid-cycle prices.
  • Issued a seven-year tenor US$650 million bond with a 7.375% coupon.
  • Received a rating upgrade from B (Positive) to B+ from Fitch, a B (Positive) from Standard & Poor and Moodys affirmed a B2 (Positive outlook) rating.
  • Completed sale of assets in the USA, 51% interest in the Energy Building and conversion and monetization of the AMNT shareholder loan.  Sales agreement signed for disposition of the Tunisia oil and gas business.
  • Liquidity continues to be strong with cash and cash equivalents of US$544 million.

Operational Highlights

  • Oil and gas production 90.5 Mboepd, driven by new production from Aceh and Yemen production re-start.
  • Unit Cash costs were US$7.9 per boe, in line with guidance.
  • MPI generated power sales 624 GWh, 5% higher year on year and in line with 2019 guidance.
  • MPI signed project finance agreements with a consortium of international banks to fund the Riau CCPP.
  • AMNT production from stockpile was 33.9 Mlbs of copper and 16.8 Koz of gold and continues to progress the Phase 7 development.

 



1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
2PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”)

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MedcoEnergi Issues US$650 Million 7NC4 Bond

JAKARTA, 6 May 2019 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce the successful issuance of a seven year 144A/Reg S US$650 million (7NC4) bond with a 7.375% coupon.

The Company received a rating upgrade from B (Positive outlook) to B+ from Fitch Ratings, a B (Positive outlook) from S&P Ratings and Moody’s affirmed B2 (Positive outlook) rating at the back of the proposed acquisition of Ophir Energy Plc and continued improvement in financial performance. The Company will use the net proceeds from the bond to fund the acquisition of Ophir Energy Plc and 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.”

Hilmi Panigoro, the President Director of MedcoEnergi, remarked “We are pleased with the final outcome of the bond issue, and also the credit ratings upgrade which reflects the confidence in our company. The approval by Ophir Energy Plc shareholders is clearly another milestone demonstrating our capability to deliver a complex, multi-jurisdictional transaction. By completing the transaction in the second quarter, we expect our position will further strengthen as an integrated energy and natural resource company. We will continue to deliver on our plans and commitments for the benefit of all our stakeholders.”

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