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

23/02/2018
MEDC-IDX
(IDR)
1,500
Market Cap
(Trilion IDR)
26.6
Volume
(lot)
272,053

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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%.

Thursday, 30/11/2017 WIB MedcoEnergi Passes Final Requirement for its Fully Underwritten Rights Issue

MedcoEnergi has obtained the final effective letter from the Otoritas Jasa Keuangan for its Rights Issue Offering.

Friday, 03/11/2017 WIB MedcoEnergi Announces Fully Underwritten Right Issue

MedcoEnergi announced that it has filed the prospectus for its planned Rights Issue to the OJK after the successful EGMS on 2 Nov 2017

Friday, 06/10/2017 WIB MedcoEnergi Strengthen Ownership in Power Business

PT Medco Energi Internasional Tbk announces that it has acquired a 77.68% interest in PT. Saratoga Power from Saratoga and other shareholders.

Monday, 02/10/2017 WIB MedcoEnergi Announces Its Audited 1H 2017 Results

PT Medco Energi Internasional Tbk announced its audited consolidated financial statements for the period ending 30 June 2017.

Monday, 14/08/2017 WIB MedcoEnergi Issued 5NC3 Bonds of US$ 300 Million

MedcoEnergi is pleased to announce that it has issued a 5NC3 S144A Reg S bond for US$ 300 million with a final coupon of 8.5%.

Friday, 14/07/2017 WIB MedcoEnergi Announces its Audited 1Q 2017 Results

PT Medco Energi Internasional Tbk announced its audited consolidated financial statements for the period ending 31 March 2017.

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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MedcoEnergi Passes Final Requirement for its Fully Underwritten Rights Issue

JAKARTA, 30 November 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to confirm it has obtained the final effective letter from the Otoritas Jasa Keuangan (OJK). The Company will now move ahead to offer existing shareholders preemptive rights to subscribe for one new share for every three existing shares held, with each new share receiving a detachable warrant to purchase a further share in the future (“the Offering”).

Approximately 4.40billion shares will be issued immediately with further 4.40billion shares issued if and when subscribing shareholders subsequently exercise their warrants. The new shares will have the same rights and characteristics as existing shares. This Offering will be available to all those registered as shareholders before December 8th, the ‘ex-rights date’.

The initial rights issue which is fully underwritten will raise IDR 2.64billion and will be completed within December 2017 with the proceeds being used for debt payment. The proceeds from the exercise of subsequent warrants will be used for working capital.

The subscription price of the new shares will be offered at IDR 600 per share and subscribing shareholders can exercise their warrants during one of three windows:
1. Between, 1 July 2018 – 31 December 2018, with an exercise price of IDR 625 per share.
2. Between, 1 January 2019 – 31 December 2019, with an exercise price of IDR 650 per share.
3. Between, 1 January 2020 – 11 December 2020, with an exercise price IDR of 675 per share.

Further details of the Offering are available in the Company’s prospectus filing and newspaper disclosures.

Hilmi Panigoro, President Director of MedcoEnergi, said that “This is a great opportunity for shareholders to exercise their rights and share in the company’s future success while also strengthening the Company’s capital structure.

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MedcoEnergi Announces Fully Underwritten Right Issue

JAKARTA, November 3rd 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that following a successful Extraordinary General Shareholders Meeting on November 2nd 2017 the Company has filed the prospectus for its planned Rights Issue to the Otoritas Jasa Keuangan.

Subject to regulatory approvals, the Company will offer existing shareholders preemptive rights to subscribe for one new share for every three existing shares held, with each new share receiving a detachable warrant to purchase additional share in the future (“the Offering”). A total of 4.45billion shares will be issued immediately with up to a further 4.45billion shares issued if and when subscribing shareholders subsequently exercise their warrants. All new shares will have the same rights and characteristics as existing shares.

The initial rights issue which is fully underwritten will raise up to IDR2,670billion and will be completed within December 2017 with the proceeds being used for debt payment. The proceeds from the exercise of subsequent warrants will be used for working capital, payment of Company’s liabilities and general corporate purposes.

The subscription price of the new shares will be priced between Rp450 and Rp600 per share. Subscribing shareholders can exercise the warrants between July 2018 and December 2020, with the exercise price for each warrant ranging between Rp500 and Rp850.

Further details of the Offering are available in the Company’s prospectus filing. The Company will also conduct roadshows over the coming weeks to describe the Offering.

Hilmi Panigoro, the President Director of MedcoEnergi, said that “The Rights Issue is a significant milestone for the Company and will improve the Company’s capital structure. The Offering will immediately reward shareholders and also allow them the opportunity to share in the Company’s future success.”

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MedcoEnergi Strengthen Ownership in Power Business

JAKARTA, 06 October 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announces that it has acquired a 77.68% interest in PT. Saratoga Power from Saratoga and other shareholders. With this transaction, the Company has increased its effective interest in PT. Medco Power Indonesia ("MPI”) from 49% to 88.62%. The remaining 11.38% effective share in MPI held by the International Finance Corporation (“IFC”) is unchanged.


Established in 2004, MPI is a leading mid-sized Independent Power Producer (IPP) in Indonesia with its primary focus on power from natural gas and geothermal sources. MPI currently operates over 520MW of gross installed capacity following the commercial operation of the Cibalapulang 1 mini-hydro facility in September 2017, and the expected commercial operation of the Sarulla Unit 2 geothermal plant in October 2017, one month ahead of schedule. MPI gross operated capacity will further increase when Sarulla Unit 3 (110MW) reaches commercial operation in Q2 2018, and Riau CCPP (275MW) in 2021.


MPI Operation & Maintenance (O&M) business has also expanded and now operates over 2,000MW of third-party power plants. This expansion is driven by two new O&M contracts signed in late 2016 where MPI now operates the Sarulla Geothermal units and PLN gas-turbine units in eight locations across Indonesia.


Hilmi Panigoro, the President Director of MedcoEnergi, said that “this acquisition allows the Company to regain majority control of MPI and to strengthen our position in the power generation sector, which is expected to continue growing at 9% per annum over the next ten years. Our increased control over MPI is consistent with the Company’s strategy to grow in three main sectors; oil and gas, mining and power, and unlocks greater potential for synergies with our upstream gas business.”

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MedcoEnergi Announces Its Audited 1H 2017 Results

SUMMARY OF 1H 2017 KEY PERFORMANCE

 

Operational

  • Oil and gas production volume increased 40.4% year on year
    • Average production was 89.8 MBOEPD (64.0 MBOEPD in 1H 2016)
    • Oil Production – 35.5 MBOPD (30.2 MBOPD in 1H 2016)
    • Gas Production – 290.6 MMSCFD (197.8 MMSCFD in 1H 2016)
    • Unit costs were $8.2/boe, below the commitment to sustain cash costs sub $10/boe

Financial

  • EBITDA of US$200.3 million (1H 2016 US$123.9 million)
  • Net profit of US$80.7 million (1H 2016 US$11.3 million)
  • Debt reduced by 8.2% from year end 2016
  • Strong liquidity with cash and cash equivalents above US$210 million and over US$150 million of trade receivables.

 

Jakarta, 2nd October 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”) announced its audited consolidated financial statements for the period ending 30 June 2017 (“1H 2017”).

Roberto Lorato, CEO said that “The Company continues to perform strongly, maintaining both production and cost management this year, we also added and certified 30 million BOE of proved reserves in Block A Aceh for which the gas development is on track to deliver first gas in late Q1 2018, the Central Processing Plant is 85% complete with the first well flow testing right now. The growth and expansion plans of our Power and Mining affiliates will continue with progress accelerating prior to year-end.”

Operational Highlights in 1H 2017

  • Oil and Gas production was of 89.8 MBOEPD in 1H 2017, 40.4% higher than 1H 2016, driven by continued high gas sales from the Senoro field and volumes from the South Natuna Sea Block B field.
  • Medco Power Indonesia (“MPI”) the Company’s power affiliate now operates over 520MW of gross installed capacity in gas, geothermal and mini-hydro power plants following the commercial operation of the Cibalapulang-1 mini-hydro facility and the expected commercial operation of the Sarulla Unit 2 Geothermal Plant in early October, one month ahead of schedule.
  • PT Amman Mineral Nusa Tenggara (“PTAMNT”) the Company’s mining affiliate continues to make good progress on its plans to reduce costs and fund future developments.


Financial Highlights in 1H 2017

  • 1H 2017 revenue was US$403.5 million, 54.3% higher than 1H 2016 with higher sales and increased average realized prices of US$49.3/bbls (+28.8%) for oil and US$5.6/mmbtu (+32.8%) for gas.
  • The Company recorded 1H 2017 gross profit of US$198.2 million and a 49.1% gross margin. Cash costs continue to be a focus area with 1H 2017 gas and oil unit cash costs US$8.2/BOE, well below the Company’s commitment to remain below US$10/BOE until 2020.
  • The Company’s 1H 2017 EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) increased by 61.7% year on year to US$200.3 million, with an improved EBITDA margin of 49.6%.
  • In 1H 2017 the Company booked net profit from operations of US$80.7 million, compared to US$11.3 million in 1H 2016. 1H 2017 results were also negatively impacted by PT AMNT price hedges and dry hole expenses in Bengara, both non-recurring items.
  • Net debt to EBITDA for 1H 2017 is 3.9x, well below the 6.7x in 2016 and the lowest level since 2013.

Hilmi Panigoro, President Director of MedcoEnergi, said that “I am pleased with the Company’s first half 2017 results and Amman Mineral Nusa Tenggara’s plans to reduce costs and develop its substantial copper and gold reserves are also progressing well, also this year we will complete our rights issue which will strengthen our capital structure and provide additional value to shareholders.”

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MedcoEnergi Issued 5NC3 Bonds of US$ 300 Million

JAKARTA, 11 August 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that it has issued a 5NC3 S144A Reg S bond for US$ 300 million with a final coupon of 8.5%. MedcoEnergi received a credit rating for both MedcoEnergi and the bond from Moody's for ‘B2’, and ‘B’ from Fitch and Standard & Poors all with ‘stable’ outlook. The proceeds of the bond will be used for refinancing existing indebtedness.

Hilmi Panigoro, the President Director of MedcoEnergi, said that with this successful transaction we are able to extend the average age of our debt maturity and access a new source of funding for our future developments. Moreover, I am particularly pleased with the international markets confidence in the Company’s business, commitment and robust asset portfolio. We look forward to working with the bond holders and expanding our relationship with this new set of investors

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MedcoEnergi Announces its Audited 1Q 2017 Results

SUMMARY OF 1Q 2017 KEY PERFORMANCE

Operational

  • Production volume increased by 41.7%
  • Average production 91.4 MBOEPD (compared to 64.5 MBOEPD in 1Q 2016)
  • Oil Production – 36.7 MBOPD (30.7 MBOPD in 1Q 2016)
  • Gas Production – 292.0 MMSCFD (197.6 MMSCFD in 1Q 2016)
  • Unit costs of $8.07/boe well below the long term commitment to remain under $10/boe

 Financial

  • EBITDA of US$108.2 million (Q1 2016 US$66.2 million)
  • Net profit of US$43.1 million (Q1 2016 US$10.2 million)
  • Debt reduced by 6% from year end 2016
  • Solid liquidity with cash, investments and cash equivalents of over US$ 180 million and $190 million of trade receivables

 

Jakarta, 14th July 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”) announced its audited consolidated financial statements for the period ending 31 March 2017 (“1Q 2017”).

Operational Highlights in 1Q 2017

  • Production volume of 91.4 MBOEPD 41.7% higher compared to 1Q 2016. The increased production volume was due to continued high gas sales on the Senoro field and a full quarter contribution from the 40% Operatorship in the South Natuna Sea Block B Field which was acquired in Q4 2016.
  • The Company is also pleased to announce the signing of a project finance facility agreement with three international banks to secure full funding for the Block A Aceh development. The project is on track and on budget, and now 48.9% complete with first gas on schedule for Q1 2018.
  • On PT. Amman Mineral Nusa Tenggara (“AMNT”), the Company is pleased to report that the shareholders of MacMahon Holdings Limited (“MAH”), based in Australia and listed on the Australian Stock Exchange, voted to approve the proposed 44.3% acquisition of MAH by AMNT, by far the single largest stake in MAH. In return, MAH will acquire the mobile equipment of AMNT and provide contract mining services for AMNT’s Batu Hijau mine. MAH is a leading provider of diverse and comprehensive package of mining services to blue chip clients in Australia, Indonesia and other parts of the world. It has extensive experience in both surface and underground mining.

Financial Highlights in 1Q 2017

  • 1Q 2017 revenue was US$210.3 million, 60.7% higher compared to 1Q 2016 with average realized prices of US$51.6/bbls (+68.6%) for oil and US$5.5/MMBTU (+33.3%) for gas.
  • The Company recorded a 1Q 2017 gross profit of US$105.1 million with an improved gross margin of 50.0%.
  • The Company’s EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) increased by 63.4% to US$108.2 million year on year, with an improved EBITDA margin of 51.5%.
  • In 1Q 2017 the Company booked net profit from operations of US$43.1 million, compared to US$10.2 million in 1Q 2016 with net income margin of 20.5% up from 7.8% in 1Q 2016.
  • Cash costs continue to be a focus area with 1Q 2017 unit cash costs of US$8.07/BOE compared to US$8.8/BOE during 2016 and below the Company’s commitment to remain below US$10/BOE until 2020.

Roberto Lorato, CEO of Medco Energi, said that “we are now seeing the full impact of last year acquisitions and of our management efforts to boost production whilst containing the operating costs. Our focus remains to continuously optimize our operations and to deliver the complex Block A Aceh gas development on schedule and within budget.

Hilmi Panigoro, President Director MedcoEnergi, said “I am pleased with this strong start of 2017 performance with production, profits and operating margins well above last year. It is also good to see progress on our major projects with the financing for Block A now closed and MacMahon shareholders approval of AMNT proposal. MacMahon specific expertise in mining planning, design and technology will support AMNT’s strategy to improve cost competitiveness of its field investments and operations”.

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