Commitment for Sustainability Excellence

Sustainability Report: Investing in the Future

MedcoEnergi is committed to contribute to the Nation’s economic growth and development. We have taken concrete actions to revamp our sustainability policies and business practices and take our strengths in the Energy sector for the benefit of the community in Indonesia. Moving forward, we will continue to invest in the future.

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

16/12/2018
MEDC-IDX
(IDR)
720
Market Cap
(Trilion IDR)
12.8
Volume
(lot)
187,713

Whistleblower

Ensuring MedcoEnergi is a safe, fair and honest place to work.
Monday, 10/12/2018 WIB MedcoEnergi Announces Its Limited Reviewed 2018 Nine-Month Results

MedcoEnergi announced the Limited Review of its consolidated financial statements for the period ending 30 September 2018

Thursday, 15/11/2018 WIB MedcoEnergi Extraordinary General Meeting of Shareholders Results

MedcoEnergi held its Shareholder Extraordinary General Meeting on 15 November 2018.

Thursday, 02/08/2018 WIB MedcoEnergi Announces 2018 First Half Results

PT MedcoEnergi Internasional Tbk announces its financial results for the first half ending 30 June 2018.

Thursday, 19/07/2018 WIB FITCH Upgrades MedcoEnergi's Rating Outlook to

The rating outlook was revised due to the expectations of an improvement in MedcoEnergi's financial profile, driven by strong oil and gas prices.

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

MedcoEnergi Announces Its Limited Reviewed 2018 Nine-Month Results

2018 NINE-MONTH RESULTS

Financial

  • Gross profit US$498.4 million, 68% higher year-on-year.
  • EBITDA US$450.2 million, 47% higher year-on-year.
  • Net Debt to EBITDA excluding Medco Power further declining to 3.2x.
  • Strong liquidity with cash and cash equivalents above US$500 million

 

Operational

  • Oil and gas production 83.7mboepd; an increase of 9% quarter on quarter
  • Full year production guideline maintained at 85mboepd;
  • Mandate signed with IFC to take an increased ownership stake in Medco Power.
  • Generated power sales 2,001 GWh, up by 30% year-on-year.
  • Oil and gas unit costs $8.8/boe
  • Tarakan PSC extended 20 years, until 2042

Jakarta, 10 November 2018 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announced the Limited Review of its consolidated financial statements for the period ending 30 September 2018 (“9M 2018”).

Roberto Lorato, CEO of the Company said that “Our nine months results were solid, with higher EBITDA and improved operating margins from continued cost discipline. In 2015 we set a net debt to EBITDA target of 3.0x and I am pleased to see further incremental progress to meeting that target.”

Financial Highlights:

  • Gross profit was US$498.4 million, 68% higher than the first nine months of 2017, with a 54% gross margin up from 50% in nine months of 2017. Over 95% of the Company’s revenue was received in US dollars, and approximately 60% of expenditures were paid in Indonesian rupiah.
  • EBITDA was US$450.2 million, 47% higher than the first nine months of 2017 driven by improved commodity and power prices and stables volumes, together with the consolidation of Medco Power. Oil and gas prices increased 39% and 11% to US$68.8/bbl and US$6.1/mmbtu respectively and average nine months non-fuel component power price year on year rose by 36%.
  • Net debt to EBITDA excluding Medco Power was 3.2x, well below the 3.6x at year-end 2017, and 6.6x at year-end 2016 and on track to meet the Company’s target of 3.0x. Consolidated net debt to EBITDA was 3.6x, well below the 4.5x at year-end 2017.
  • The oil and gas segment booked a net income of US$113.1 million, while the consolidated net loss of US$11.1 million was due to non-cash losses from mining affiliate PT Amman Mineral Nusa Tenggara (“AMNT”). AMNT completed mining phase-6 of the Batu Hijau mine in Q3 2017; subsequent revenues are generated from processing the stockpiled ore.
  • In the current uncertain price environment, the Company’s liquidity is strong with cash and cash equivalents above US$500million. Long-term gas contracts underpinned with take-or-pay quantities make up 67% of Company’s production, of which 35% are fixed price gas contracts and 32% indexed to commodity prices. A further 20% of 2019 liquids production is hedged to a Brent equivalent floor of ~$50/bbl.
  • The Company has now refinanced and combined its Senoro and Block A Reserved Based Lending (RBL) Facilities into a single RBL with an accordion to fund future developments. 
  • Drilling and project efficiencies and deferrals together with favorable exchange rates have allowed the Company to further reduce its 2018 capital spending guidance to US$340million. The Company’s consolidated capital guidance for 2019 is US$270 million, which will allow further room for deleveraging and maintain liquidity.
  • The Company has obtained revised shareholder approval for a non-preemptive private placement of up to 10% of issued shares at a minimum price of IDR868/share, ~US$100 million.  Discussions continue to place these shares to qualified and preferred buyers.

 

Operational Highlights

  • Nine-month 2018 average oil and gas production was 83.7 mboepd, an increase of 9% quarter on quarter. Block A Aceh gas development project is ramping up from current 34 mmscfd to 83 mmscfd by year-end 2018.
  • The Company is maintaining its 2018 full year guidance of ~85 mboepd and has the capacity to deliver up to 100 mboepd, subject to gas customer demand. 2019 oil and gas production guidance is 85mboepd.
  • Oil and gas unit cash costs were US$8.8 per boe.  The Company will maintain the guidance for unit cash costs to be kept below US$10.0 per boe in 2019 and 2020.
  • The Company received a 20 year of extension of the Tarakan PSC from the Government of Indonesia.
  • Medco has signed a Mandate with the International Finance Corporation to increase its stake in Medco Power. The Company has also appointed JPMorgan to identify a second strategic investor for Medco Power to support continued growth. 
  • Medco Power Indonesia’s gross installed capacity rose more than 10% year-on-year to 2,819MW, following commercial operation in May of the third and final unit of phase one of the Sarulla Geothermal facility. 2019 guidance gross installed capacity is at 2,835MW.
  • The Riau gas fired CCPP has secured Financing Declaration from PLN in September 2018. The project is now under construction, aiming to reach commercial operation in Q2 2021. Funding is being provided by a consortium of international banks.
  • AMNT continues to progress its future developments with phase 7 financing now fully secured with over US$1.2Bn of committed facilities from four major Asian based banks.  First production from phase 7 is expected in first half of 2020.

Hilmi Panigoro, President Director of MedcoEnergi, said that “I am pleased with the nine-month results and to announce the issue of our Sustainability Report which clearly lays out the Company’s commitment to long term goals for best practice sustainable operations and development.”

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MedcoEnergi Extraordinary General Meeting of Shareholders Results
MedcoEnergi Announces 2018 First Half Results

SUMMARY 1Q 2018 PERFORMANCE

Financial

  • EBITDA above US$300 million, up more than 50% year-on-year
  • Gross profit US$320 million, up more than 60% year-on-year
  • Annualized net debt to EBITDA maintained at 3.5x
  • Strong liquidity with cash and cash equivalents above US$500 million

Operational

  • Oil and gas production 82.4 mboepd; down year-on-year due to phasing of gas customer demand. 2018 production guidance maintained >85 mboepd
  • Aceh gas sales ramp up beginning early August, increasing Medco daily production capacity to 100 mboepd
  • Oil and gas unit cash costs US$8.5 per boe
  • Generated power sales 1.3GWh, up 28% year-on-year
  • Sarulla phase one, third 110MW unit placed into service

 

Jakarta, August 2nd 2018 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announces its results for the half year ending 30 June 2018 (“1H 2018”).

Roberto Lorato, CEO of MedcoEnergi, said “Our strong operational performance and cost focus is allowing us to capitalize on the current favorable commodity prices. With Sarulla phase 1 completed and in commercial operation and Aceh in commissioning, we must ensure both projects maintain smooth operations to continue to deliver improved results.”

Financal Highlights

  • First half 2018 EBITDA was US$ 301.3 million, 50.4% higher than the first half of 2017 driven by improved commodity prices and stable volumes, together with the consolidation of Medco Power. Oil and gas prices increased 35% and 9% to US$66.8/bbl and US$6.0/mmbbtu respectively and average power prices rose by 56% to 4.19c/kwh, excluding fuel.
  • Gross profit was US$319.8 million, 61.5% higher than the first half of 2017, with a 55% gross margin up from 49% in first half of 2017. Over 95% of the Company’s first half revenue was received in US dollars, and approximately 60% of expenditures were paid in Indonesian rupiah.
  • Net income was US$41.4 million, 35% lower than the first half 2017 with improved oil and gas performance offset by losses in the Company’s mining affiliate PT Amman Mineral Nusa Tenggara (AMNT) as it accelerates the development of phase 7 of the Batu Hijau mine.
  • Drilling and project efficiencies and deferrals together with favorable exchange rates have allowed the Company to cut its 2018 capital spending guidance by ~15%.
  • Medco Power Indonesia raised IDR1.2 trillion in a standard and a shariah compliant bond in its debut capital market transaction.
  • Annualized net debt to EBITDA was 3.5x, or 3.2x excluding Medco Power.


Operational Highlights

  • First half 2018 average oil and gas production was 82.4 mboepd, lower than the first half 2017 due to the phasing of gas market demand. The Company maintains its 2018 full year guidance of 85 mboepd and has the capacity to delivery up to 100 mboepd, subject to gas customer demand.
  • Oil and gas unit cash costs were US$8.5 per boe, in line with Company’s target to maintain unit cash costs below US$10.0 per boe
  • Aceh gas sales ramp up beginning early August, with the project delivered under budget.
  • Medco Power Indonesia’s gross installed capacity rose 20% year-on-year to 2,795MW following commercial operation in May of the third and final unit of phase one of the Sarulla Geothermal facility.
  • In the first half of 2018 AMNT has ramped up phase 7 development to full capacity and secured its first facility from an international bank. Amman is in the process of appointing the smelter Front End Engineering and Design contractor.

Hilmi Panigoro, President Director of MedcoEnergi, said “Through the first half of 2018 MedcoEnergi was able to strengthen our fundamentals and contribute significantly to the country’s economy by providing competitive and affordable energy as well as expanding our capacity and tax contributions. We will continue our plans to deliver value for our stakeholders as well as invest in the future.” 

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FITCH Upgrades MedcoEnergi's Rating Outlook to

Jakarta, 19 July 2018 – Fitch Ratings today affirmed PT Medco Energi Internasional Tbk’s ("MedcoEnergi" or the "Company") as B issuer rating but revised their outlook from to Positive from Stable. The rating outlook was revised due to the rating agency’s expectations of an improvement in MedcoEnergi's financial profile, driven by strong oil and gas prices. This revised rating outlook follows a similar revision to Positive by Moody’s in January this year.

Roberto Lorato, Director and CEO of PT Medco Energi Internasional Tbk said "We are grateful for the outlook upgrade. The revision reflects the Company’s consistent delivery on its commitments. We are continuing to pay attention to cost efficiency and deleveraging in this strong commodity price environment.”

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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 Internasional 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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