EMP repays part of outstanding debt

IDX-listed oil and gas firm PT Energi Mega Persada Tbk. (EMP) reported Monday that in the past 11 months, the company has repaid part of its outstanding debt.

From January to December 2014, EMP has reduced its debt by more than US$200 million, the company said in a statement.

?In the past 4 years, EMP has steadily increased its daily production rate, and gas price. Our main focus now is to deleverage our balance sheet which will result in reduced interest cost going forward,? said EMP CEO Imam Agustino.

Didit Ratam, EMP?s Director, further added, ?In the past months, we have successfully repaid some of the outstanding debts after refinancing (at lower rate) last year. Hence, EMP?s Debt to Equity ratio has improved to 0.7x as per 30 September 2014 (from 0.82x in previous year). Similarly, EMP?s EBITDA to Interest Cost ratio also got better to almost 6x in the first 9 months 2014 (from 4.4x last year).?

EMP is an upstream oil and gas company which produced around 12,928 barrels oil per day and 224.5 million cubic feet gas per day throughout the first nine months of 2014. As per September 30, the company operates proved and probable reserves of 16.4 million barrels of oil and 895 billion cubic feet of gas.

Type of Loans	Loan Outstanding 31-Dec-2013	Loan Outstanding 30-Sep-14	Loan Outstanding 19-Dec-14
short term loans (Pro Strategic Investors Ltd + PST Finance Ltd.)	$163,969,154	$149,454,032	$151,941,367
long term loans *syndicated loan arranged by BAML (ONWJ project) *capex carry loan from Mitsubishi & Japex (Kangean project)	$203,000,000 $339,984,658	$161,881,837 $319,027,543	$161,294,061 $190,766,151
total	$706,953,812	$630,363,412	$504,001,579

Editing by Reiner Simanjuntak