JAKARTA (TheInsiderStories) – Publicly listed firm, PT Energi Mega Persada Tbk (IDX: ENRG) plans to offer new share with targeting proceeds up to US$129.34 million, the management announced on Thursday (01/21). The company owned by Bakrie Group ready to releases up to 14.47 billion new shares with an exercise price of Rp126 a share.
Based on the prospectus, PT Bakrie Kalila Investment become a standby buyer of the limited public offering and is targeting to be implementing on March 25 – 31, 2021. The producer will use $43.5 million of the funds to acquire 25 percent of EMP Inc.’ shares from Kinross International Group Ltd.
The subsidiary owned and operated Kangean Block in East Java and aimed to jack up the ownerships from 50 percent to 70 percent. Energi Mega also prepared $43.59 million to pay the debt and $42.24 million for business expansion. In 2020, the block contributed 48 percent of the company’ total oil and gas production. The average production in Kangean is 185 million standard cubic feet per day (MMSCFD).
“Therefore, increasing ownership in Kangean will have a positive impact on the company’s total oil and gas production, as well as revenue and net profit performance,” noted by president and CEO of the company, Syailendra Bakrie.
He explained, the proceeds from the rights issue also allocated for working capital include developing oil and gas assets in the Buzi Block in Mozambique. While, the debt payment is expected to reduce interest expenses, strengthen liquidity, and boost the company’ profitability.
Finance director, Edoardus Windoe, added in addition to acquire oil and gas assets, the company will remain focused to increases the production of the existing assets. So far, Bentu Block and Kangean Block have contributed significantly to the group’ production. He asserted, “We are also ready to lift up the production from other oil and gas assets, including the Malacca Strait block.”
CCO of Energi Mega, Adinda Bakrie, added that Buzi block in Africa have shown interesting progress. The company has drilled two wells which are planned to be completed in the second semester of 2021. The company hope that the Buzi block can start the gas production in 2024.
In the first nine months, the issuer posted net sales of $239 million, up 25 percent compared to the same period in 2019 amounted to $191.99 million. The net profit also rose 254 percent from $11.88 million to $42.03 million and operating profit grew 45 percent to $92 million compared to a year ago.
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