Medco targets flat 2001 net profit

Although world's crude oil priceis declining at the moment, the management of PT Medco Energi International is optimistic that the company will match last year's net profit or even exceed it.

"The target for profit will be reached by, among them, pushing output volume up to 80,000 barrels per day," said Gamala Katoppo, Medco Energi's investor relation to IndoExchange Dotcom.

Last year, Medco booked Rp573.3bn net profit, or tripled the amount from the previous year, boosted by the increase of crude oil price up to US$28.84 per barrel.

At present, with crude oil price at around $21-23 per barrel, Medco is trying hard to increase oil production to make up for the possibility of decline in revenue due to lower world's oil price.

Output target of 80,000 barrels per day for this year might likely be surpassed. In 2000, Medco produced 66,800 barrels per day.

"By end of 2001, the company predicts to book average oil price at $24-25 per barrel," said Katoppo.

The prediction of oil price is far lower compared to last year's that reached $28.84 per barrel. Such is also lower than $26.38 per barrel in the first semester of 2001. The impact of world's oil price decline will be reflected in the fourth quarter of this year.

"With average production of crude oil at 80,000 barrels and average oil price at $24-25 per barrel, the company expected to be able to match, or even surpass, the previous year's net profit," Katoppo added.(*)