Medco reports stronger operating, financial performances
Saturday, July 15 2017 - 02:55 AM WIB
IDX-listed energy company PT Medco Energi Internasional Tbk reported Friday that average oil and gas production in the first quarter (Q1) of this year jumped by 41.7 percent to 91.4 mboepd compared to 64.5 mboepd in the corresponding period of last year.
?The increased production volume was due to continued high gas sales on the Senoro field and a full quarter contribution from the 40 percent operatorship in the South Natuna Sea Block B Field which was acquired in the fourth quarter of 2016,? Medco said in a statement.
The company said that revenue in the first quarter of this year was US$210.3 million, 60.7 percent higher, year-on-year, with average realized prices of $51.6/bbls (up 68.6%) for oil and $5.5/MMBTU (up 33.3%) for gas.
The company said it recorded a gross profit of $105.1 million in the first quarter with an improved gross margin of 50 percent.
The company?s EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) increased by 63.4 percent to $108.2 million year on year, with an improved EBITDA margin of 51.5 percent.
The company said it booked net profit from operations of $43.1 million in the first three-month period of this year, compared to $10.2 million in the same January-March period of 2016 with net income margin of 20.5 percent up from 7.8 percent in the first quarter of 2016.
Cash costs continue to be a focus area with first quarter 2017 unit cash costs of $8.07/BOE compared to $8.8/BOE during 2016 and below the company?s commitment to remain below $10/BOE until 2020.
Medco said in April it has set a higher oil and gas output this year amid improving oil price environment. The company said that it has set oil and gas production guidance for 2017 in the range of 75-80 mboepd, or 13.64-21.21 percent higher than last year?s output of 66 mboepd.
Medco also said at the time that it planned drilling program on the South Natuna Sea Block B this year to access untapped hydrocarbon resources. Medco through subsidiary PT Medco E&P Natuna currently holds a 40 percent interest in the block as operator. Inpex Corp which owns a 35 percent interest in the block announced on March 27 it plans to sell the entire stake in the block to PT Medco Daya Sentosa, a subsidiary of Medco. Chevron holds the remaining 25 percent interest.
Editing by Reiner Simanjuntak