Medco?s H1 net profit surged 64.7% on higher oil sales
Tuesday, August 2 2011 - 02:23 AM WIB
In 1H11, the company posted sales of US$ 580.04 million, jumped 46.07% from the same period last year at US$ 397.1 million. The rise was mainly contributed by the sharp increase of oil and gas sales to US$ 354.8 million, or increased by 61% from the same period last year.
The company said in a statement that the higher average oil price in the period to US$ 113.2 per barrel compared to US$ 80.5 per barrel in the same period last year lifted the company?s revenues in 1H11. In addition, Medco?s oil and gas production also increased in the period to 56.5 MBOEPD from 55.5 MBOEPD in the same period last year.
The higher sales also pushed up the company?s cost of goods sold to US$ 397.62 million from US$ 243.33 million in 1H10. However, the company managed to post gross profit of US$ 182.4 million in 1H11, up from US$ 153.8 million in the same period last year.
The company?s operating expenses increased by 17.2% in 1H11 mainly due to a rise of employees? salaries and compensations as well as strengthening of Rupiah against US dollar. As a result, the company?s operating profit increased not as high as its sales. In the period, Medco booked operating profit of US$ 109.5 million, up 19.6% from 1H10 at US$ 91.6 million.
As of end of June 2011, the company?s assets increased 12.9% to US$ 2.3 billion, from US$ 2.1 billion end of June 2010. The increase was mainly attributed to the rise of the company?s cash and cash equivalent as well as other assets.
The company?s cash and cash equivalent surged 34.9% in 1H11 to US$ 363.1 million, from US$ 269.1 million in 1H10, mainly driven by a rise in cash flow from operational activities as well as cash flow from investments, which increased by 153.6% and 325.3% respectively. The rise in cash-flow from operation was in line with an increase of oil and gas sales.
The rise of cash flow from investment was partly driven by the divestment of its wholly-owned unit Tomori E&P Limited at end 2010, the payment of which was received by the company in January 2011. In the period, Medco also received the remaining payment of the sale of 48.72% of its stake in PT Apexindo Pratama Duta Tbk in 2008, amounting to US$ 35 million in June 2011.
Meanwhile, the company?s liabilities at end of June 2011 increased by 14.2% to US$ 1.5 billion from US$ 1.3 billion at end of June 2010. The increase was mainly due to a rise in non-current liabilities, following the withdrawal of loans from a number of banks to meet the company?s project financing and working capital needs.
The company?s equity at end of June 2011 stood at US$ 813.8 million, up 13.9% from the same period last year at US$ 714.6 million.
?The company?s financial position remains strong. Given a significant increase of the company?s cash and cash equivalent in the period, the company will have the capability to meet its financial commitments this and in the coming years,? Syamsurizal Munaf, Medco?s Finance Director, said.
?The financing facilities, obtained by the company recently from BRI and BNI, is expected to be used by the company to meet financing needs as well as working capital in the coming years,? Syamsurizal added.
Lukman Mahfoedz, Medco?s President, added that the company is currently preparing a new strategy and is planning to boost the company?s performance over the next five years. This includes ensuring that the existing projects are completed in time as well as embarking on already planned exploration activities. (godang)