Medco swings to profit, hopes to complete acquisitions before year-end
Monday, October 24 2016 - 03:23 PM WIB
The company, however, said in a statement Monday that profit attributable to owners of the parent company increased significantly from net loss of $51.1 million in 9M15 to net profit of $22.3 million in 9M16, thanks among others to cost efficiency measures.
It added that gross profit was recorded at $159.5 million and operating income increased 6.4 percent to $86.5 million, year-on-year.
Meanwhile, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased by 10 percent to $181.5 million, with an improved EBITDA margin up from 39.5 percent to 43.5 percent, year-on-year.
Medco said that production volume was 21.1 percent higher than in 9M15 at 63.9 mboepd. ?The increase in production volume was mainly attributed to the additional contribution of Senoro-Toili Gas field,? it said in the statement.
Medco Energi?s average realized oil price for the period was $39.5/bbl, or 26.1 percent lower compared to 9M15, whilst average realized gas price was $4.2/mmbtu, or 23.4 percent lower from 9M15.
The company said it lowered unit production cash costs by 28 percent to $7.9/boe, well within its 2016 full year target of below $10/boe.
Elsewhere, Medco said it has obtained shareholder approval for the acquisition of a 50 percent stake in PT Amman Mineral Investama which will indirectly control 82.2% interest in gold and copper mining firm PT Newmont Nusa Tenggara. Closing of the transaction is expected in October 2016, the company said.
Medco has also signed a Sale and Purchase Agreement to acquire Japex?s 16.67 percent interest in the Block A Aceh PSC. Closing is expected also in October 2016.
The company has also signed a Share Sale and Purchase Agreement with ConocoPhillips to acquire a 40 percent participating interest (and Operatorship) in the South Natuna Sea Block B PSC, along with West Natuna Transportation System gas transportation system. Closing is expected in November 2016.
It has also signed a Share Sale and Purchase Agreement to divest a 100 percent participating interest in Bawean PSC. Closing is expected in the fourth quarter of 2016.
Medco said it has obtained shareholder approval for a rights issue with a target to raise an initial $150 million.
The company has also raised a total of Rp 2.5 trillion through its Shelf Registered IDR bond program. The recent issuance was heavily oversubscribed and the company will issue another phase of this program in November 2016.
?Our production continues to be strong and we are on track to meet our increased targets for the year. We have focused upon our cost efficiency efforts and will continue to do so. The company?s acquisitions are also on schedule and our target remains to complete both before the end of the year, said Roberto Lorato, CEO of Medco Energy in the statement.?
Editing by Reiner Simanjuntak