JAKARTA (TheInsiderStories) - PT Medco Energi Internasional Tbk (IDX:MEDC) announced that its extraordinary shareholders held on Friday (Sept. 30) approved the board’s decision to acquire 50 percent shares of PT Amman Mineral Investama, which indirectly holds 82.2 percent shares in PT Newmont Nusa Tenggara, the operator of giant gold and copper mining in Sumbawa, West Nusa Tenggara.
The shareholders also approved the management’s plan to launch rights issue to raise US$150 million fresh funds.
Medco said the acquisition will provide significant added value to the shareholders of Medco. Batu Hijau currently has 2.6 billion copper and 2.7 million ounce of gold proven reserves and undeveloped 12.9 billion lbs of copper and 19.7 million ounce of gold.
The acquisition shows that Medco is expanding its business aggressively through acquisitions. Recently, the company has signed sales and purchase agreement with ConocoPHillips to acquire 40 percent participating interest of ConocoPhillips in South Natua Sea, Block B PSC, along with gas pipe transportation called West Natuna Transportation System (WNTS). The transaction is set to conclude in November 2016.
In addition it has agreed to divest 100 percent its participating interest in Bawean PSC to an investor, which is expected to be finalized by the end of this year.
Medco has raised Rp2.5 billion from bonds issue, which was oversubscribed and planned additional bonds issuance in the fourth quarter 2016.
CEO MedcoEnergi, Roberto Lorato, said despite challenges in the oil and gas industry, Medco Energi continue to increase its assets portfolio. “Our focus currently is to integrate these assets into our company organization.”
President Director of MedcoEnergi, Hilmi Panigoro, added the acquisitions are considered strategic which is in line with the company’s ambition to become a leading independent player in the natural resources in Indonesia.
H1 Results:
Medco posted revenues of US$281 million in the six months to June, with average oil price of US$38.3 per barrel and realized gas price of US$4.18 per mmbtu. Its oil and gas production reached 64,000 barrels of oil equivalent per day (boepd), increased 29 percent from H1 2015. The increase was boosted by an increase of production from Senoro-Toili field.
Its gross profit reached US$107 million and operation profit stood at US$58 million, while its EBITDA (earnings before interest, taxes, depreciation and amortization) increased 14 percent to US$121 million in the period, compared to H1 EBITDA.
The company booked net profit of US$11 million compared net loss of US$31 million in the same period last year.
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