JAKARTA (TheInsiderStories) – PT Medco Energi Internasional Tbk (IDX:MEDC) reported full year net profit of US$185 million in 2016, compared with a 2015 net loss of US$188 million net loss in previous year. The financial performance was partly boosted by the acquisition of PT Amman Mineral Nusa Tenggara (AMNT), previously known as Newmont Nusa Tenggara (NNT).
In 2016, Medco’s oil and gas production increased to 66,000 barrels of oil equivalent per day (boepd), up from 56,000 boepd in previous year, while its EBITDA rose from US$220 million to US$274 million in 2016.
“Despite continued business uncertainty we pursued a clear strategy to acquire quality producing assets at advantaged prices,” Hilmi Panigoro, President Director of Medco Energi said. “
Roberto Lorato, CEO of Medco Energi said that in 2016, the company exceeded its guidance in all areas.
“We acquired two large strategic producing assets, pushed forward with execution of the Aceh gas development, achieved a year end production run rate of over 80,000 boepd. In 2017 we will build upon this and remain disciplined in pursuing our operational and financial goals,” Lorato said.
Operational highlights 2016:
• Oil and gas production of 66,000 boepd, compared to 56,000 boepd in 2015.
• Aceh gas development on budget and on track with work now over 35 perxcent complete.
• Replaced 232 percent of hydrocarbon production, technically certified a further 880 BCF (gross) of gas on Senoro and awarded a 10 year extension for the Lematang PSC.
• AMNT full year production was 477 million lbs of copper and 798 thousand oz gold.
• Medco Power produced 1.7 GW compared to 1.3G W in 2015 and won the tender to construct a 275MW IPP in Riau.
Financial Highlights:
• Completed the acquisition of a 40.89 percent indirect interest in AMNT.
• Completed the acquisition of a 40 percent Operating interest in the South Natuna Sea Block B.
• Consolidated our Block A Aceh interest to 85 percent by acquiring 16.67 percent from Japex and 26.67 percent from KrisEnergy .
• Completed the acquisition of Lundin’s 25.8 percent interest in Lematang.
2017 Guidance
• Oil and gas production in the range of 75,000 – 80,000 boepd.
• Unit cash costs will remain below $10/BOE in 2018, and through 2020
• Drilling on the South Natuna Sea Block to access untapped hydrocarbon reserves
• The Aceh gas development will continue with drilling in the second quarter.
• Power generation will be in the range of 2.1 – 2.2 GWh.
• AMNT production will be 300-310 million lbs copper, 400-420 thousand oz gold,
• AMNT will complete its smelter feasibility study and sanction a new mine plan.
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