JAKARTA (TheInsiderStories)–PT Medco Energi International Tbk (IDX: MEDC)’s net profit for the first half this year fell 48.6 percent to US$41.4 million (year on year/yoy) due to a loss in PT Amman Nusa Tenggara (AMNT). The company booked US$80.6 million in the first semester last year.
CEO MedcoEnergi Loberto Lorato said on Wednesday (02/08) in a press release that the company actually recorded improvement in the oil and gas business performance, but suffered a loss in the mining business through PT Amman Mineral Nusa Tenggara (AMNT) that began to develop 7 stage in Batu Hijau mine.
Oil price increased 35 percent to US$66.8 per barrel, while gas price up 9 percent to US$6 per MMBtu. In addition, average power prices rose by 56% to 4.19¢ per kWh, excluding fuel.
Furthermore, MedcoEnergi booked 82.4 mboepd of oil and gas production in the first half of this year, lower than production in the first quarter last year due to the phasing of gas market demand.
The Company maintains its 2018 full year guidance of 85 mboepd and has the capacity to deliver up to 100 mboepd, subject to gas customer demand. Oil and gas unit cash costs were US$8.5 per boe, in line with Company’s target to maintain unit cash costs below US$10 per boe.
The company targets Aceh gas sales ramp up beginning in early August, with the project delivered under budget.
In addition, the company’s power business subsidiary Medco Power Indonesia’s gross installed capacity rose 20% year-on-year to 2,795 MW following commercial operation in May of the third and final unit of phase one of the Sarulla Geothermal facility. Medco Power raised Rp1.2 trillion in a standard and sharia bonds.
PT Medco Ratch Power Riau, a consortium of PT Medco Power Indonesia and Ratchaburi Electricity Generating Holding of Thailand that develops a gas power plant in Riau earlier get financing extension package up to US$50 million from the International Finance Corporation (IFC), a member of the World Bank Group. The power plant has a capacity of 275 megawatts.
In the mining business, AMNT has ramped up phase 7 development to full capacity and secure its first facility from an international bank in the first semester of this year. Amman is in the process of appointing the smelter Front End Engineering and Design (FEED) contractor.