Medco's 2005 dividend may reach 40% of profits

Publicly listed oil company PT Medco Energi Internasional Tbk plans to pay about 40 percent of the company's profits in 2005 as dividend to shareholders, Bisnis Indonesia reported on Wednesday.

The dividend payout commitment was unveiled by Medco Energi's president director Hilmi Panigoro during an interview with Bisnis Indonesia in Jakarta on Tuesday.

Hilmi said that the company, which booked total assets of about US$1.4 billion or about Rp 14 trillion, recorded gross profits of between $300 million and $350 million in 2005, thanks to the sharp increase in oil prices in the world market.

He said that with the increase in the company's gas and oil production, the company hoped the total assets would double to about Rp 28 trillion within the next five years.In order to boost oil and gas production, the company would allocate about $300 million this year to finance new exploration and production activities.

From exploration services provided by its subsidiary PT Apexindo Pratama Duta, the company expected a profit margin of between 50 percent and 100 percent, he added. (*)