Stock |
02/12/2024 |
| MEDC-IDX (IDR) |
1,050 |
| Market Cap (Trilion IDR) |
26.4 |
| Volume (lot) |
203,592 |
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Ensuring MedcoEnergi is a safe, fair and honest place to work.
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Summary Results Financial
Operational
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Jakarta, October 31st, 2024 – PT Medco Energi Internasional Tbk announces its 2024 nine months financial results.
Roberto Lorato, CEO, said, "I am pleased to announce another solid quarter of operational and financial performance. This is driven by the successful completion of key projects at Suban, Meliwis, and West Belut. We also advanced the Ijen geothermal and the Bali solar PV power projects, and were awarded a Conditional License to import 600 MW of solar power to Singapore in the Pacific Medco Solar Energy consortium."
- The Company paid dividends of US$70 million in 2024, with an interim dividend on November 1st of IDR15.75/share, up 5% year on year.
- EBITDA was US$979 million and Net Profit, US$273 million with peer leading2 Return on Equity of 16%.
- MedcoEnergi’s share of AMMN net profit was US$129 million, up by US$116 million year-on-year.
- Oil & Gas production was above guidance at 153 mboepd, and average realized oil prices were US$80/bbl.
- Capital expenditures were US$300 million, mainly allocated to progressing Natuna, Corridor, Oman 60 and Ijen new developments.
- Restricted Group debt was US$2.8 billion with US$107 million repaid in the first nine months, partially offset by currency revaluations of US$42 million.
- Cash and cash equivalents were US$672 million with Net Debt to EBITDA1 1.7x
- Moody’s revised their Outlook to B1 Positive following similar upgrades from S&P and Fitch Credit Ratings to BB-.
Operational Highlights
Oil and Gas
- Production was 153 mboepd, lower than 2023 due to the reduced Corridor working interest and Vietnam divestment, partially offset by the Oman acquisition. Production was 27% Oil and 73% Gas.
- Cash costs were US$7.7 per boe and capital expenditures US$249 million.
- Several new projects were brought onstream in Q3 with Corridor Suban 27, Madura Meliwis and the Natuna West Belut platform supporting first gas deliveries under a new gas contract.
- MedcoEnergi was awarded a new exploration block, the Amanah PSC located onshore South Sumatra adjacent to the existing Corridor and South Sumatra PSCs.
Power
- Medco Power generated sales of 2,961 GWh, with 21% from renewable sources. Sales were slightly down year-on-year due to the Riau gas-fired IPP shutdown in August.
- Power capital expenditure was US$51 million, spent to progress phase one of the Ijen Geothermal development, the 25 MWp East Bali Solar PV project and the Batam ELB expansion to a CCPP.
- Pacific Medco Solar Energy consortium was awarded a Conditional License from the Energy Market Authority of Singapore (EMA) to import 600 MW of solar power to Singapore.
- Medco Power was awarded a new geothermal exploration (PSPE) in Samosir, North Sumatra located close to the existing Sarulla Operations.
Amman Mineral Internasional
- Copper production was 335 Mlbs, 68% higher year-on-year and gold production was 708 Koz, 173% higher year-on-year. Copper prices were US$4.2/lbs.
- The smelter project was completed in May and inaugurated by President Joko Widodo in September.
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2025 Full Year Guidance
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Hilmi Panigoro, President Director, said, "I am pleased with our operational and financial results. Our ongoing efforts to support a sustainable energy future, combined with our dedication to adhering to international ESG best practices, have earned positive recognition from both investors and rating agencies."
1Annualized and excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
2Bloomberg on 30 October 2024. Peers Harbour, PGN, Energi Mega Persada, PTT EP, and Hibiscus
Jakarta, September 11th, 2024 - PT Medco Energi Internasional Tbk (MedcoEnergi) today outlined its strategic plans for future growth at a Capital Markets Day at The Energy Building, Jakarta. The company reaffirmed its commitment to delivering affordable, reliable, and sustainable energy solutions while positioning itself to capitalize on the growing energy demand in Southeast Asia. MedcoEnergi's strategy involves expanding its Oil & Gas operations, investing in clean and renewable Power, and Copper Mining. The company also underscored its dedication to decarbonization and maintaining a strong ESG profile.
President Director Hilmi Panigoro stated, “We aim to be a leading Southeast Asian energy company with our three core business lines. Our focus on ESG and community development demonstrates our commitment to positive impact.”
In the Oil & Gas sector, MedcoEnergi continues to enhance its production and reserves by acquiring assets both in Indonesia and internationally.
Looking ahead, Hilmi noted that Indonesia’s energy demand is expected to double by 2050, driven by increased renewable energy adoption. While fossil fuels will remain essential, gas will play a key role as a transitional fuel. “Renewable energy will significantly contribute to Indonesia’s future energy mix, with gas serving as a bridge until low-carbon technologies are fully matured,” Hilmi added. MedcoEnergi’s renewable energy initiatives were recently recognized when Singapore’s Energy Market Authority (EMA) granted a conditional license for a 600 MWac solar project on Pulau Bulan.
Financial Performance
Hilmi Panigoro emphasized the company’s exceptional financial performance, stating, “Our Total Shareholder Return since 2022 has outperformed not only our industry peers but also a broader group of energy stocks listed on the IDX. We exceeded our peers in Return on Equity for both 2022 and 2023, a clear reflection of our strong financial discipline and improving profitability.”
We are pleased to announce an interim 2024 dividend of IDR 15.75 per share, representing a 5% increase compared to the interim dividend last year. This reinforces MedcoEnergi’s confidence in the future of the business and its continuing commitment to delivering value to its shareholders.
Strong ESG Commitment
MedcoEnergi’s commitment to sustainability is reflected in its improved ESG ratings. The company's ESG risk score, as evaluated by Sustainalytics, improved from 36.7 (high risk) in 2022 to 29.6 (medium risk) in 2023. Additionally, MedcoEnergi maintained its MSCI ESG rating of A, reinforcing its dedication to responsible business practices.
Executive Team at the Event
The Capital Markets Day event was attended by key executives, including President Director Hilmi Panigoro, Chief Executive Officer (CEO) Roberto Lorato, Chief Operating Officer (COO) Ronald Gunawan, Chief Financial Officer (CFO) Anthony R. Mathias, Chief Administrative Officer (CAO) Amri Siahaan, and Medco Power’s Chief Executive Officer (CEO) Eka Satria.
Jakarta, September 11th, 2024 – Medco E&P Natuna Ltd (Medco E&P) is pleased to announce the successful commencement of first gas delivery from its West Belut project in the South Natuna Sea Block B. This significant milestone underscores Medco E&P’s commitment to supporting National’s production targets.
The West Belut project, a fast-tracked offshore gas development located in the South Natuna Sea Block B, achieved first gas delivery on Wednesday, September 11th, 2024. Discovered at the end of 2020, the field underwent rapid development starting in 2022 and achieved first gas in less than three years, with excellent HSE performance. The platform is an unmanned facility, powered 100% by solar PV. The project's early completion is a testament to Medco E&P's commitment to efficient execution and its ability to deliver on its project commitments.
Ronald Gunawan, Director and Chief Operating Officer of Medco E&P, stated, "We are delighted to announce the successful first gas delivery from the West Belut project. This achievement is a testament to the hard work and dedication of our team, as well as the invaluable support from the Ministry of Energy and Mineral Resources (ESDM) and SKK Migas.”
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Summary Results Financial
Operational
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Jakarta, July 31st, 2024 – PT Medco Energi Internasional Tbk1 announces its First Half 2024 financial results.
Roberto Lorato, CEO, said, “Our first half results were robust supported higher commodities prices and improved AMMN earnings’ contribution. Operational performance was in line with our guidance, including an impactful drilling program. Fitch and S&P upgraded our credit rating to BB-, evidence of MedcoEnergi's successful execution of its growth strategy and consistent deleveraging.”
- EBITDA US$650 million above 1H 2023, US$634 million. Net Income was US$201 million, due to higher realized oil and gas prices and improved AMMN contribution.
- AMMN Net Income contribution was US$99 million, significantly improved, and supported by near record copper and gold production.
- Average realized oil prices were US$81/bbl and gas prices were US$7/mmbtu.
- Capital expenditures were US$188 million, spent mainly on drilling production wells in Oman Block 60, progressing developments in Natuna, Corridor and the Ijen geothermal project.
- The Oman acquisition was awarded “Asia Pacific Deal of the Year” by the Energy Council.
- Successful completion of Vietnam Block 12W and Libya Area 47 divestments, with cash proceeds US$120 million.
- Deleveraging continued through tender offers and bond buybacks retiring US$215 million of USD Notes.
- Consolidated debt was US$3.2 billion, Restricted Group3 debt was US$2.7 billion.
- Consolidated Cash and cash equivalents were US$653 million with Net Debt3 US$2.2 billion and Net Debt to EBITDA2 1.7x.
- Received an upgrade from S&P Global Rating to “BB-”, this follows an upgrade by Fitch Rating in May 2024.
- Distributed the final 2023 dividend of US$45 million, bringing the total dividend paid for the 2023 financial year to US$70 million or IDR 45 per share, an increase of 16% from 2022.
Operational Highlights
Oil and Gas
- Oil & gas production was 153 mboepd, above guidance, but 5% lower than 1H 2023 mainly due to the reduced Corridor working interest post PSC extension, lower Singapore piped gas demand, and the divestment of Vietnam Block 12W, but partially offset by higher oil volumes from Oman Block 60 and Natuna.
- Oil & Gas capital expenditure was US$152 million, to progress developments in Natuna, Corridor and production wells in Oman Block 60.
Power
- Power sales were 2,003 GWh, of which 20% from renewable sources.
- Power capital expenditure was US$36 million. 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 progressing well for completion in Q1 2025.
Copper and Gold Mining
- Copper production was 236 Mlbs, 76% higher year-on-year and gold production was 495 Koz, 189% higher year-on-year, setting a record for the highest first half production in seven years. Copper prices were US$4.5/lbs.
- The smelter project entered commissioning on May 31st, 2024, with the first production of copper cathode expected in Q4 2024.
- Received export permit from Indonesia's Ministry of Trade to export copper concentrate until December 31st, 2024.
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2024 Full Year Guidance
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Hilmi Panigoro, President Director, said “I am very pleased with the Company's results in the first half. The recent Oman acquisition is performing well, and the recent higher dividend shows our continuing commitment to reward our shareholders.”
1PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”)
2Annualized and excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
3Excluding Medco Power
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.”