Medco reports 40.4% increase in 1H oil, gas output
Tuesday, October 3 2017 - 01:09 AM WIB
IDX-listed energy company PT Medco Energi Internasional Tbk said that oil and gas production in the first-half of this year (1H2017) increased by 40.4 percent to 89.8 MBOEPD compared to 1H 2016, driven by continued high gas sales from the Senoro field in Central Sulawesi Province and volumes from the South Natuna Sea Block B field in Riau Islands Province.
The company said in a statement on Monday that 1H 2017 revenue was US$403.5 million, 54.3 percent higher than 1H 2016 with higher sales and increased average realized prices of $49.3/bbls (+28.8%) for oil and US$5.6/mmbtu (+32.8%) for gas.
The company recorded 1H 2017 gross profit of $198.2 million and a 49.1 percent gross margin. Cash costs continue to be a focus area with 1H 2017 gas and oil unit cash costs $8.2/BOE, well below the company?s commitment to remain below $10/BOE until 2020.
The company?s 1H 2017 EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) increased by 61.7 percent year on year to $200.3 million, with an improved EBITDA margin of 49.6 percent.
In 1H 2017 the company booked net profit from operations of $80.7 million, compared to U$11.3 million in 1H 2016.
?1H 2017 results were also negatively impacted by PT AMNT price hedges and dry hole expenses in Bengara, both non-recurring items,? Medco said, referring to gold and copper mining firm PT Aman Mineral Nusa Tenggara in West Nusa Tenggara Province, which is co-owned by the company.
Net debt to EBITDA for 1H 2017 is 3.9x, well below the 6.7x in 2016 and the lowest level since 2013.
?The company continues to perform strongly, maintaining both production and cost management this year, we also added and certified 30 million BOE of proved reserves in Block A Aceh for which the gas development is on track to deliver first gas in late Q1 2018, the Central Processing Plant is 85% complete with the first well flow testing right now. The growth and expansion plans of our Power and Mining affiliates will continue with progress accelerating prior to year-end,? said Medco CEO Roberto Lorato in the statement.
Editing by Reiner Simanjuntak