Medco?s 2006 net revenue increases

Indonesia?s publicly-listed energy firm PT Medco Energi International said Wednesday that its net revenues showed a significant increase of 28 percent, to US$ 792.4 million in 2006 compared to $620.1 million in 2005.

This increase is due to higher average oil price of $63.98 per barrel in 2006 compared to $53.68 per barrel in 2005, while average gas price appreciated to $2.79 per mmbtu in 2006 compared to $2.45 per mmbtu in 2005.

The drilling services also contributed significantly to the company?s increased revenue amounting to $148,1 millions in 2006 compared to $105 millions in 2005.

Meanwhile, direct cost increased by approximately 88 percent to $381.9 million in 2006 from $ 203.2 million in 2005. The increase was due to higher operating cost derived from production and lifting cost, exploration expenses, and drilling operation cost.

The other largest expense was the loss borne by Medco E&P Brantas PSC amounting to $61.7 million, due to the decrease of the asset value, provisions of cash call expenses, as well as the depletion of the asset itself, as a result of the Lapindo mud incident.

Moreover, Medco?s net income of $38.1 million, which is 49 percent lower than $ 74.7 million booked in 2005.

Medco has set about $400 million of capital expenditure for 2007. In oil and gas E&P business, the company continues to focus its activities on the exploration and development of the existing fields as well as actively looking for new reserves in Indonesia and abroad through acquisitions and strategic alliances. (denny/Bernard)