Medco?s net income down 35% in 2003

Despite a higher revenue, publicly listed oil company PT Medco Energi International's net income decreased by a whopping 35.2 percent to US$53.4 million in 2003 from $82.6 million in 2002 due to its interest expense on bonds sale.

Medco said in the statement on Thursday that its operating revenue had increased by 10.1 percent to $463.4 million in 2003 from $420.7 million in 2002.

?The increase was mainly due to significant increase in average crude oil price to US$29.33 per barrel in 2003 from US$25.30 in 2002,? Medco said.

The energy company did not elaborate on its bond interest expenses. It issued dollar-denominated bonds worth $100 million in 2002 and $200 million in 2003.

Medco also said the adjustments made to its 2002 financial statement resulted in the change of net income for the year to $82.5 million from $84.1 million with major adjustments made to additional provision for corporate income taxes of non-operating subsidiaries.

According to the statement, Medco?s net revenue from oil and gas sales, drilling services, and methanol sales were $319.1 million, $89.2 million, and $55.1 million, respectively.

Direct costs in 2003 increased by 27.2 percent to $271.1 million from $213.1 million in 2002.

The significant increase of direct costs primarily come as a result of a 62 percent increase in lifting costs of the oil and gas operations to $104.9 million in 2003 from $64.9 million in 2002. The increase in the lifting costs is mostly due to the enhanced oil recovery (OER) activities in an effort to arrest the decline of its major field, Kaji/Semoga, in Rimau PSC, South Sumatra.

Medco operates several oil and gas concessions through its 99 percent-owned subsidiary, PT Exspan Nusantara. Meanwhile, drilling service and methanol production are handled by subsidiaries PT Apexindo Pratama Duta and PT Medco Methanol Bunyu, respectively.

Medco is 85.51 percent owned by Mauritius-based investment company New Links Energy Resources Ltd. (robert)

MEDCO's 2003 RESULTS	2003	2002	Change (%)
OPERATION HIGHLIGHTS	?	?	?
Oil Production (BOPD)	66,820	85,840	-21.8
Gas Sales (MMCFD)	87.9	67.6	32.2
Offshore Rig Utilization (%)	78	70	11.4
Onshore Rig Utilization (%)	57	61	-6.5
Methanol Production (MT)	265,451	223,364	18.8
Methanol Sales (MT)	262,000	232,576	12.6
Crude Price (US$/barrel)	29.33	25.30	16.0
Methanol Price (US$/MT)	212.0	132.3	60.2
FINANCIAL HIGHLIGHTS (in million US$)	?	?	?
Revenue	463.4	420.7	10.1
Gross Profit	192.3	207.6	-7.4
Total Assets	978.9	751.8	30.2
Equity	487.2	473.0	3.0
Cash from Operation	194.8	267.0	-27.0
Net Income	53.4	82.6	-35.3
EPS (US$/share)	0.0172	0.0264	-34.8