Medco reports solid Q3 revenue on higher gas price
Saturday, October 26 2013 - 04:20 AM WIB
The company said in a statement obtained Friday that the oil and gas Exploration and Production (E&P) business unit contributes 94 percent of total sales, or US$ 615.2 million.
This sales is based on a total oil and gas sales volume of 14.7 million barrel during the period of 1 January to 30 September 2013 and the average of oil price of $108.5 per barrel and weighted average of gas price of $5.32 per MMBTU (million BTU). The oil price decreases compared to 2012 at the same period of $117.7 per barrel. Meanwhile, the gas price increases by 36 percent from $3.92 per MMBT U in 2012 due to the successful renegotiation by the company for its gas sales contracts.
During the third quarter, MedcoEnergi has booked gross profit of $277.5 million and operating income of $179 million.
The company has successfully decreased its operating costs by 3 percent from $101.3 million in the third quarter of 2012 to $98.3 million and booked an EBITDA of $249 million. The company has retired its corporate loans, especially for loans which bear high interest rate, therefore the interest payment can be reduced by nearly 20 percent, from $68 million in 2012 to $54.6 million.
MedcoEnergi said that profit attributable to equity holders of the parent company (Net Profit) from continuing operations during the third quarter was recorded at $30 million.
During this period, the company has decided to discontinue and close down the operation of its ethanol plant, which has been in operation since 2009 due to insufficient of sustainable feed stock supply. The close down has resulted in $20 million loss of asset impairment. As a result, the company books its Net Profit of $10million for the third quarter period.
In development of the company?s major projects, the Senoro gas upstream has reached over 30 percent completion while the Donggi Senoro LNG development reached 90 percent completion. Both projects are slated for completion by end of 2014.
The Area 47 Libya project has also shown a good progress with the operation of the Joint Operating Company (JOC) of Nafusah Oil Operations (?Nafusah?). MedcoEnergi, with its partners consisting of NOC (National Oil Corporation) Libya and LIA (Libyan Investment Authority), is currently developing resources for Nafusah organization, as well as carrying out several subsurface studies in preparation for FEED (Front End Engineering Design). The production facilities, with a capacity of 50,000 barrels per day, is targeted for completion by the end of 2016.
President Director and CEO of MedcoEnergi, Lukman Mahfoedz, stated that ? The current progress of our major projects reflects the completion of Senoro upstream and Donggi Senoro LNG projects can be achieved by end of 2014. Completion of these two projects will be followed by other major projects completion, such as Libya, Simenggaris, and Block A in the following years. ?
Editing by Reiner Simanjuntak