Medco books US$5.1m profit during Q2
Monday, July 29 2013 - 02:41 AM WIB
During the same period, its operational income reached US$ 120.2 million, while its EBITDA amounted to US$166,3 million.
MedcoEnergi President Director and CEO Lukman Mahfoedz said that despite a decrease in sale during the second quarter, his company?s financial state remains in solid condition. ?It is indicated by our success in continuing support for ongoing development of our main projects Senoro and Lybia. Beginning next year, our company?s income will increase as Senoro project will start its gas production. Then it will be followed by other projects such as Area 47 Libya, Block A and Rimau EOR in 2016,? he said.
During the second quarter, Medco booked a total sale at US$ 428.5 million, a decrease of 6,7 percent from US$ 459.5 million at the previous quarter. The lower sale was due to lower prices of oil at the international market and lower production. The oil prices during this year so far averaged at US$ 109,5/bbl as compared to US$ 120,8/bbl in 2012. Its oil production so far this year reached 26,2 MBOPD, as compared to 31,6 MBOPD in 2012.
The production decrease was caused not only by technical problems and natural decline in old wells, but also due to non-technical matters such as slow licensing procedures with central and local administrations, overlapping land-sites of operation with plantations and other mining companies, drilling problems, as well as security and other social problems on the fields.
?But we?ve managed to reduce the natural decline from 20-25 percent per year to only 10-15 percent per year,? he said.
He said gas production was stable at about 153,8 BBTU per day. Medco has also managed to renegotiate its gas prices, so that its average gas price has increased by 32,7 percent to US$ 5,05/MMBTU until June this year, from US$ 3,81/MMBTU earlier up to June in 2012.
During the second quarter, Medco managed to cut its total production and operation costs by 2,5 percent, from US$ 316,7 million in 2012 to US$ 308,4 million in 2013. To strengthen its financial condition in the long term, Medco has conducted some impairment, including to stop the operation of its ethanol plant in Lampung.
Editing by Benget Besalicto ST