Stock |
28/06/2024 |
| MEDC-IDX (IDR) |
1,340 |
| Market Cap (Trilion IDR) |
33.7 |
| Volume (lot) |
165,368 |
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Jakarta, June 28th, 2024 – PT Medco Energi Internasional Tbk (MedcoEnergi) today paid its final dividend for the financial year 2023.
The dividend payment of US$45,045,000 brings the total dividend paid for the financial year 2023 to US$70,045,000 or IDR 44.8060 per share, an increase of 16% from the dividend paid for the financial year 2022.
Hilmi Panigoro, President Director of MedcoEnergi, said, "We are delighted to pay this final dividend 2023 distribution to our shareholders. It demonstrates our commitment to reward our shareholders for their continued trust and support.“
Jakarta, Indonesia, June 27, 2024 – PT Medco Energi Internasional Tbk (MedcoEnergi) reports a credit upgrade to BB- by S&P Global Ratings (S&P).
S&P has upgraded MedcoEnergi's credit rating to BB- from B+. This follows an upgrade by Fitch Ratings from B+ to BB- in May 2024. In their summary S&P highlighted the financial flexibility provided by MedcoEnergi's 20.92% equity stake in Amman Mineral Internasional (AMMN)1. The 20.92% equity stake in AMMN has a market value in excess of US$10 billion.
Hilmi Panigoro, President Director of MedcoEnergi, said, "This is a further recognition of MedcoEnergi's successfully executed business strategy of acquisition, organic growth and deleveraging. Our consistent operational performance has delivered a strong financial profile which has positioned us well to continue executing our strategy in the future."
1Amman Mineral Internasional is listed on the Indonesia Stock Exchange (IDX: AMMN)
Jakarta, May 30, 2024 – PT Medco Energi Internasional Tbk ("MedcoEnergi") held its Annual General Meeting of Shareholders (AGMS) on May 30, 2024.
Hilmi Panigoro, President Director of MedcoEnergi said, "In 2023 MedcoEnergi met all its targets for Oil & Gas, Power sales, unit costs, capital deployment and debt reduction. The continued trust and support from shareholders have been essential in enabling us to expand our horizons and achieve another successful year."
During the AGMS, shareholders approved a total dividend of US$70,045,00 for the 2023 financial year. The total dividend includes a US$25,000,000 interim dividend (IDR 15 per share) which was distributed to shareholders on December 15, 2023, and a US$45,045,000 (US$0.0018 per share) final dividend which will be distributed on June 28th, 2024 at the prevailing exchange rate.
Additionally, shareholders also approved the 2023 Annual Report and Audited Financial Statements, the remuneration for the Board of Commissioners and Board of Directors and the appointment of the financial auditor for 2024.
Jakarta, May 27, 2024 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announces the divestment of its holding in Contract Area 47, Libya to the National Oil Corporation of Libya ("NOC”).
MedcoEnergi and NOC have agreed the transfer of the Company’s entire (50%) participating interest in the Contract Area 47 Exploration and Production Sharing Agreement (“EPSA”), and its entire (24.5%) shareholding in the Joint Operating Company, Nafusah Oil Operations B.V. The divestment also settles all claims and counterclaims under the arbitration between MedcoEnergi and NOC, which the two entities have agreed to withdraw.
Roberto Lorato, MedcoEnergi's CEO, said, “This divestment aligns with MedcoEnergi's strategy to continuously upgrade our portfolio through targeted acquisitions and divestments. We appreciate NOC's cooperation during the transaction.”
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Summary Results Financial
Operational
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Jakarta, April 30, 2024 – PT Medco Energi Internasional Tbk2 announces its First Quarter 2024 financial results.
Roberto Lorato, CEO, said, "We're pleased to report solid operational and financial results for the first quarter of 2024. The higher oil volumes in the improved production guidance is well timed with the improving oil price environment and indicates a positive outlook for the rest of the year."
- EBITDA US$328 million, slightly higher than Q1 2023. Net Income was US$73 million, below the US$82 million in Q1-2023, principally due to the reduced contribution from Amman Mineral Internasional (AMMN).
- AMMN contribution to MedcoEnergi was US$16 million lower than Q1 2023 despite the increased production, due mainly to higher export duties and higher non-tax government payments.
- Average realized oil prices were US$79.0/bbl, above the US$76.4/bbl in Q1 2023, while average gas prices were US$7.0/mmbtu.
- Capital expenditures were US$99 million, spent mainly on drilling in Oman, progressing new developments in Natuna, Corridor and the Ijen geothermal project.
- Cash and cash equivalents were US$478 million with Net Debt3 US$2.5 billion and Net Debt to EBITDA1 1.9x.
- Fitch Ratings upgraded the Company’s credit rating to “BB-” and Pefindo reaffirmed their “idAA-” rating.
- Completed the divestment of the Vietnam business unit to Bitexco Energy Company Limited.
- The final 2023 dividend will be announced after the AGMS at end of May 2024.
Operational Highlights
Oil and Gas
- Full year production guidance has been revised upwards from 145 mboepd to a range between 145 – 150 mboepd, due to higher liquids production, but with some remaining uncertainty on Singapore piped gas demand.
- Oil & gas production was 157 mboepd in Q1 2024, flat with Q4 2023, above guidance and 7 mboepd below Q1 2023 due to the reduction in Corridor working interest post PSC extension, and lower piped gas demand in Singapore but partially offset by higher oil volumes from Oman 60 and Natuna.
- Oil & Gas capital expenditure was US$83 million, mainly to progress developments in Corridor (Suban), Natuna (Forel and West Belut) and producing wells in Oman Block 60.
Power
- Power sales were 1,062 GWh, of which 19% from renewable sources.
- Power capital expenditure was US$16 million, spent progressing the development of Ijen Geothermal and East Bali Solar PV.
- The 25MWp East Bali Solar PV construction is on track for completion by the end of 2024 and the 34 MW Ijen geothermal phase I development is also progressing well for completion in Q1 2025
Copper and Gold Mining
- Copper production was 98 Mlbs, 21% higher year-on-year and gold production was 167 Koz, 34% higher year-on-year.
- The smelter construction is on schedule and is now 88% complete.
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2024 Full Year Guidance Company 2024 guidance:
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Hilmi Panigoro, President Director, said "We continuously review our portfolio and look for new value creation opportunities. The successful closing of the Vietnam divestment and the accretive Oman acquisition position MedcoEnergi for continued success.”
1PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”)
2Annualized and excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
3Excluding Medco Power
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.”