Stock |
26/04/2024 |
| MEDC-IDX (IDR) |
1,425 |
| Market Cap (Trilion IDR) |
35.8 |
| Volume (lot) |
461,633 |
Whistleblower
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Jakarta, 19 April 2024 – PT Medco Energi Internasional Tbk. (“MedcoEnergi” or the “Company”) announces the successful completion of the divestment of its entire share capital of Ophir Vietnam Block 12W B.V. (“OVBV”) to Bitexco Energy Company Limited (the “Transaction”).
OVBV holds a 31.875% participating interest in Chim Sao and Dua (“Block 12W”), the producing oil and gas field located in Vietnam.
Roberto Lorato, CEO, Said, “This divestment aligns with MedcoEnergi's strategy of active portfolio management through targeted acquisitions and divestments. We appreciate Bitexco’s cooperation during the transaction and expect the fields to continue to add value for the new owners.”
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Summary Results Financial
Operational
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Jakarta, April 1, 2024 – PT Medco Energi Internasional Tbk announces its Full Year 2023 Audited financial results.
Roberto Lorato, CEO, said, “This was another busy and productive year. In 2023 we met all of our targets for oil and gas production, power sales, unit costs, capital expenditure and debt reduction. We also increased our cash dividend, amended the Corridor PSC, closed the acquisition in Oman, completed the Amman IPO, the largest Indonesian IPO of the year, and met our GHG emissions reduction targets two years ahead of plan.”
Financial Highlights
- Net Profit was US$331 million and EBITDA US$1,255 million, lower than in 2022 reflecting lower oil and gas prices and reduced contribution from Amman Mineral Internasional (AMMN).
- MedcoEnergi share of AMMN net profit was lower year-on-year due to severe rainfall and delays in renewing the export permit.
- Average oil and gas prices were also lower at US$78/bbl, down US$18/bbl year-on-year from the US$96/bbl in 2022, and average 2023 gas prices were US$7/mmbtu. Despite the lower price, oil and gas results remained resilient due to our low cash costs and further reserve additions.
- Other non-cash impairments were largely offset by non-cash gains, including classifying our Libya asset as an asset held for sale, and a dilution gain following the AMMN IPO.
- Capital expenditures, excluding the Oman acquisition, were US$333 million spent mainly progressing developments in Natuna, Corridor and the Ijen geothermal project.
- Consolidated debt at year end was US$3.3 billion, Restricted Group1 debt was US$2.8 billion. Excluding the debt drawn at year end to close the Oman acquisition, debt is now back to 2018 levels.
- Cash and cash equivalents were US$425 million with Net Debt1 US$2.5 billion and Net Debt to EBITDA1 2.1x.
- An interim dividend of ~IDR15 per share was distributed in December 2023, and a total dividend of ~US$65mn was paid in 2023. The final 2023 dividend will be announced after the AGMS.
- Strong ESG performance continued with an improved Sustainalytics score.
- In Q4 2023 a tender offer bought back US$425mn of USD Notes 2025 – 2028 and a new US$500mn 2029 USD Note was issued for refinance.
Operational Highlights
Oil and Gas
- Oil & gas production was 160 mboepd, with a cash cost of US$8.3 per boe.
- In 2023 we completed the acquisition of a 20% interest in producing Block 60 and exploration Block 48 in Oman
- Signed new Gas Sales Agreements on the Corridor and Natuna Block B PSCs. Obtained favorable amendments to the Corridor PSC to support the economics of new exploration and gas developments.
- These reserve additions increased the 2P reserve life index to 10.6 years.
- The Natuna Bronang gas project was brought online in September 2023.
- Signed a new exploration PSC for the Beluga Block located in the Natuna Sea.
- Oil and gas production guidance for 2024 is 145 mboed. This is below 2023 production levels as a result of contractual reduction of MedcoEnergi’s working interest in Corridor PSC after December 2023, security concerns in Yemen and temporary lower piped gas demand in Singapore because of low current LNG spot prices.
Power
- Power sales were 4,155 GWh, 19% from renewable sources.
- A final investment decision was made to develop the 25MWp East Bali Solar PV, expected to be operational by the end of 2024.
- Construction of the 34 MW Ijen geothermal phase I remains on track for completion in Q1 2025.
- Construction of the Batam Combined Cycle expansion from 70MW to 109 MW is also on track and expected to be operational by Q4 2025.
Amman Mineral Internasional
- Copper production was 312 Mlbs and gold production was 463 Koz, below 2022 due to severe rainfall and delays in renewing the export permit.
- Smelter construction is on schedule and is now 76% complete.
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2024 Full Year Guidance 2024 Full Year guidance:
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Hilmi Panigoro, President Director, said , "We have grown in scale and profitability significantly since 2018, and after another good year in 2023 I am excited for the future of MedcoEnergi. As we continue to grow, we will remain committed to ESG leadership, we will increase our renewable energy capabilities, expand our gas portfolio and continue to engage with our stakeholders and investors."
1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
Jakarta, 14 December 2023 – MedcoEnergi has obtained Ministerial approval for an amendment to the new Corridor Block PSC. The PSC will revert to a Cost Recovery PSC with improved terms to ensure the economic development of several new developments and sustain further exploration on the block.
The gas allocation and gas price for three gas buyers were also approved, including for PT Perusahaan Gas Negara Tbk (PGN). The Gas Sale and Purchase Agreements will be signed shortly.
The total contracted gas delivery from the block is now ~700 bbtud, with 83% sold to domestic buyers and 17% exported to Singapore.
Ronald Gunawan Medco E&P President Director stated, ”This agreement represents a significant forward step in securing a stable and sustainable future for the Corridor Block, generating substantial benefits for the Country, MedcoEnergi, partners and all stakeholders.”
Jakarta, 12 December 2023 – PT Medco Energi Internasional Tbk ("MedcoEnergi”) has completed the acquisition of 20% interests in two Exploration and Production Sharing Agreements (EPSA) in the Sultanate of Oman from OQ Exploration & Production LLC (“OQEP”).
MedcoEnergi has acquired a 20% interest in the Block 60 producing EPSA and a 20% interest in the Block 48 exploration EPSA, both located onshore in western Oman near the border with Saudi Arabia. Block 60 covers an area of 1,485km2 and is currently producing ~63 mboepd from the Bisat oil and AbuTabul gas fields, the EPSA will expire in 2048. The adjacent Block 48 covers an area of 2,995 km2 and has significant prospective oil and gas potential.
OQEP will remain Operator of both Blocks and will facilitate the exchange of expertise in gas exploration, development, technology application and sustainability processes through the secondment of MedcoEnergi personnel to the joint operations and bilateral corporate assignments.
OQEP is Oman’s third largest producer and a subsidiary of OQ Group SAOC, the state owned global integrated energy group. It currently operates three blocks in Oman and is involved in several production and exploration joint ventures in both Oman and Kazakhstan.
President Director Hilmi Panigoro stated, “This acquisition leverages our reputation for sustainability and gas development and provides a new hub from which to expand low-cost production.”
Jakarta, 28 November 2023 – PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") is pleased to announce that it has received Royal approval to acquire 20% interests in two blocks in Oman. The transaction is now expected to complete in December 2023.
MedcoEnergi will acquire from OQ Exploration & Production LLC (“OQEP”), a 20% interest in the Block 60 producing license and a 20% interest in the Block 48 exploration license, both located onshore in west central Oman. Block 60 holds two producing fields; Bisat oil field and Abu Butabul gas field. OQEP is a global integrated energy company with its roots in Oman. OQEP currently operates three blocks in Oman (8, 48 and 60) and is a participant in a number of production and exploration joint ventures both in Oman and Kazakhstan. OQEP will remain the Operator of both Blocks.
Hilmi Panigoro, President Director stated “This acquisition is in line with our strategy of owning and developing high-quality, cash-generative assets with great growth potential. Once completed, the acquisition will increase MedcoEnergi's daily production by ~13 MBOEPD and contribute significantly to future gas and liquids reserves.”
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Summary Results Financial
Operational
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Jakarta, 1 November 2023 – PT Medco Energi Internasional Tbk announces its nine months 2023 financial results.
Roberto Lorato, Chief Executive Officer, stated, "I am pleased to report another quarter of solid operational and good financial results. The recent reserve reports showing increased Natuna and Corridor reserves are the result of MedcoEnergi's capabilities and continued investment in our high quality assets. In order to add value we will continue to focus on cost leadership and first class project delivery."
Financial Highlights
- The Company will pay an interim dividend for 2023 of IDR15/share.
- Net Profit for the first nine months was US$242 million, and EBITDA US$941 million reflecting lower oil and gas prices and reduced contribution from AMMN.
- Oil & gas production however was flat year-on-year at 161 mboepd. Prices averaged US$77/bbl for the first nine months of 2023, down by US$24.1/bbl from the US$101.1/bbl in the same period in 2022. Prices in Q3 2023 recovered to US$80/bbl.
- MedcoEnergi share of AMMN net profit was US$13 million, down by US$159 million year-on-year.
- New reserve reports on Natuna and Corridor extended MedcoEnergi proved and probable reserve life to 9.7 years.
- Capital expenditures were US$210 million, spent mainly progressing Natuna, Corridor and Ijen developments.
- Consolidated debt was US$2.9 billion down by 12% year-on-year, Restricted Group debt was US$2.5 billion or down by 14% year-on-year.
- Cash and cash equivalents were US$666 million with Net Debt US$2.2 billion and Net Debt to EBITDA1 at 1.6x.
- In Q4 2023 a tender offer bought back US$425mn of USD Notes 2025 – 2028 and a new US$500mn 2029 USD Note was issued for refinance.
Operational Highlights
Oil and Gas
- Oil & gas production was 161 mboepd flat year-on-year, cash costs US$7.5 per boe.
- Oil & gas capital expenditure was US$155 million, mainly to progress several development projects in Natuna and Corridor.
- Corridor domestic GSA renewal is in progress and expected to be signed before year end.
Medco Power
- Medco Power generated sales of 3,079 GWh, with 20% from renewable sources. Sales improved 5%, year-on-year from the contribution of Riau 275MW gas-fired IPP and Sumbawa 26 MWp solar PV facilities.
- Average realized electricity price were US¢ 3.7/kwh net of fuel costs, up by 2.8% year-on-year.
- Power capital expenditure was US$55 million, mainly to progress the development of Ijen Geothermal 34MW which is on track for completion by December 2024.
- Signed a new partnership with MOECO to evaluate the Bonjol Geothermal asset.
AMMN
- AMMN incurred higher compliance costs due to the delayed issue of the export permit, an export duty increase and began accruing the Non-Tax Government Revenue.
- Copper production was 199Mlbs, and gold production 259Koz.
- Average realized copper prices were US$4.0/lbs.
- Smelter construction is on schedule to achieve >70% by year end.
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2023 Full Year Guidance Company 2023 guidance:
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President and Director Hilmi Panigoro stated, "I am very pleased with our operational and financial performance. The recent bond issuance and strong bond investors support confirms the Company's record of consistent delivery on our commitments and deleveraging plans. With the improving commodity prices and energy demand we look forward to continuing on our path of sustainable growth.”
1Annualized and excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
Jakarta, 20 October 2023 –PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce the successful issue of a five and a-half-year tenor, 144A/Reg S US$500 million bond with an 8.96% coupon.
The Company’s credit ratings were affirmed as B+ (positive) from Fitch, B+ (stable) from S&P and B1 (stable) from Moody’s. The Company will use the proceeds for the refinance of indebtedness.
Roberto Lorato, CEO of MedcoEnergi, said “We are pleased with this outcome, especially since the strong support from investors reflects the Company’s record of consistent delivery of our commitments, both operational performance and deleveraging. With improving commodity prices and energy demand we look forward to continuing our sustainable growth”.
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Summary Results Financial
Operational
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Jakarta, 2 October 2023 – PT Medco Energi Internasional Tbk announces its audited first semester 2023 results.
Roberto Lorato, CEO, said, “First half 2023 performance was robust with increased gas volumes and the Natuna Bronang platform placed into service. Oil prices were 30% lower year-on-year, but have since recovered. The IPO of AMMN in July was a great success and exports have now been accelerated to make up for the delays in the first half.”
Financial Highlights
- Net Profit US$119 million and EBITDA US$634 million. First half results were lower year-on-year due to the lower contribution from AMMN and lower realized oil and gas prices, partially offset by higher volumes.
- Medco share of AMMN net profit was US$27 million, down by US$103 million from the first half of 2022. This was due to a four-month deferral in copper and gold sales following a delay in renewing AMMN’s export permit. AMMN continued operations during the delay and restarted exports in July.
- Oil & Gas production was 162 mboepd, up 6% year-on-year. However average Oil & Gas prices were US$75.2/bbl and US$7.2/mmbtu respectively, down US$29.1/bbl year-on-year from the US$104.4/bbl in 2022.
- Capital expenditures were US$127 million, spent mainly on progressing the Natuna, Corridor and Ijen developments.
- Cash and equivalents were US$604 million, Net Debt US$2.5 billion and Net Debt to EBITDA1 1.8x.
- Medco distributed a 2022 dividend of ~IDR39 per share and is on track to fully repay the US$850 million Corridor acquisition debt by Q1 2024.
Operational Highlights
Oil and Gas
- Oil & Gas production was 162 mboepd, up 6% year-on-year and cash costs US$7.4/bbl.
- Oil & Gas capital expenditure US$99 million mainly to progress Natuna and Corridor developments.
- Placed into service the Natuna Bronang platform utilizing minimal facilities and solar panels.
- Awarded the Beluga exploration PSC located close to MedcoEnergi's existing South Natuna Sea Block B infrastructure.
- Initiated Carbon Capture Sequestration (CCS) studies with international partners on the Natuna and Corridor reservoirs.
- Received four awards from SKK Migas for Project Performance, Assurance and Consulting Excellence at the 4th International Convention on Indonesia Upstream Oil & Gas.
- Received Subroto award on Corridor PSC from the Ministry of Energy and Minerals.
Medco Power
- Power sales were 2,003 GWh, an 8% increase year-on-year, with additional sales from the Riau 275MW gas-fired IPP and Sumbawa 26 MWp solar PV facilities.
- Power capital expenditure was US$28 million, mainly to progress the development in Ijen Geothermal.
- The Energy Market Authority (EMA) of Singapore awarded a Conditional Import License to Medco Power and its consortium for a 600MW solar project.
- The Ijen geothermal development is on track for completion by December 2024, with 2 of the 4 production wells now undergoing long term testing.
AMMN
- Following the IPO, AMMN market capitalization is ~US$26bn, with MedcoEnergi ownership ~21%.
- Production resumed faster than expected following the recent heavy rainfall and AMMN expects to reach or exceed its 2023 full year production guidance.
- Construction on the smelter is on schedule with expected completion above 70% by December.
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2023 Full Year Guidance Company 2023 guidance:
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Hilmi Panigoro, President Director, said "With its strong operational performance, Singapore’s award of a Conditional Import Licence for a 600MW solar project and the successful IPO of AMMN, I am pleased that MedcoEnergi is delivering long-term value and returns for its shareholders as well as contributing to the Energy Transition efforts of our country."
1Annualized and excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
Jakarta, September 11th, 2023 – PT Medco Energi Internasional Tbk (MedcoEnergi) is pleased to announce that on Friday, September 8th, 2023, its wholly owned subsidiary Medco Power Global and its consortium partners PacificLight Renewables Pte Ltd and Gallant Venture Ltd were granted by the Energy Market Authority (EMA) of Singapore a Conditional Award for a 600MW solar project.
The project will install over 2,000MWp of solar PV and 500MW of battery storage and is expected to be completed by 2028. It will play an important role in Singapore’s energy transition to a low carbon future and will contribute to the development of the renewable energy sector in Indonesia through investment by international solar PV and BESS manufacturers.
Mr. Hilmi Panigoro, President Director of MedcoEnergi commented “The Bulan Solar Project represents a model of cooperation between Indonesia and Singapore, which will promote the development of the renewables energy sector and the local PV and BESS manufacturing in Indonesia. I am very pleased that through Medco Power we will contribute to a more sustainable and prosperous future for both countries”.
Jakarta, 25 July 2023 – The Indonesian government, through the Ministry of Energy and Mineral Resources (MEMR) has awarded the Beluga Block oil and gas working area to PT Medco Energi Internasional Tbk (MedcoEnergi). The announcement was made at the 47th Indonesia Petroleum Association Conference and Expo at Indonesia Convention Exhibition, BSD City, Tuesday (25/7).
MedcoEnergi will pay a signature bonus of USD100,000 and implement a firm work commitment of USD8 million over the next three years. Beluga is located near to MedcoEnergi’s existing Operated, South Natuna Sea Block B PSC which would allow a rapid monetization of the Beluga resources through the existing infrastructure.
Ronald Gunawan, Chief Operating Officer of MedcoEnergi said “MedcoEnergi appreciates the trust shown by the Government of Indonesia and the opportunity to develop this new PSC.”