Medco gains international supports to carry out expansion projects
Tuesday, September 12 2000 - 03:30 AM WIB
Publicly listed Medco Energi International has received strong supports from a number of international financial institutions to back up its expansion plan, according to the company's executive.
Medco's investors relations manager Thendry said in Jakarta on Monday that the international financial agencies had expressed their interest to provide financial assistance to help the company carry out its expansion projects.
"Negotiations with some of the institutions are still underway," he was quoted as saying by Neraca daily,
He declined to names of the companies, saying their participation would be announced only after the financial institutions made their firm commitment.
Medco, which operates several oil blocks in the country, plans to develop a gas pipeline project in Sumatera and to develop a gas reserve in Toli Toli, Central Sulawesi. Thendry said that each of the project would cost the company about US$40 million. "
He said that the company gained more confidence from the foreign financial institutions due to an improvement of its financial performance during the first six months of this year. According to him, in the year ended in June, the company booked total revenue of about Rp 1.17 trillion, with net profit reaching Rp 349 billion.
The company's debts also fell sharply to Rp 445 billion in the first semester from Rp 609 billion in the same period last year. Although, Medco had about Rp 485 billion in cash, the company would not use the money to pay all the unmatured debts. "It would be better for us to use the money for the expansion projects," he said. (*)