MedcoEnergi maintains strong performance
Wednesday, March 20 2013 - 02:21 AM WIB
The company said in a press statement on Tuesday that its operating income increases by 33 percent from US$ 220.3 million in 2011 to US$ 293.2 million in 2012. Its total assets increased by 2.7 percent to US$ 2.66 billion, compared to US$ 2.59 billion in 2011; whereas total liabilities increased to US$ 1.81 billion from US$ 1.73 billion in the previous year.
The acquisition of the interest in Yemen?s Block 9 in 2012 contributes EBITDA of US$ 39.5 million and net income of US$ 17.3 million to the company.
The company?s liquidity is also strong with a cash and cash equivalent of US$ 523.65 million at 31 December 2012. In 2012 some of the cash was utilized to repay existing loans with high borrowing costs, thus the overall interest rate of all remaining loans can be reduced to about 5 percent.
Its overall sales and revenues during 2012 reached US$ 909.05 million, a surge of 11.2 percent from the 2011 overall sales and revenues of US$ 817.72 million.
The main contributor of the 2012 sales and revenues increase is sales and revenues of oil and gas which have remained strong, growing by 9.1 percent, from US$ 800.5 million in 2011 to US$ 873.03 million in 2012, representing 96 percent of the company?s overall sales and revenues.
The increase in oil and gas sales and revenues is mainly driven by higher oil price of US$ 115.6/bbl in 2012 compared to US$ 113.7/bbl in 2011 and successful renegotiated gas contracts with higher gas price (average of US$ 4.03/MMBTU in 2012, compared to US$ 3.8/MMBTU in 2011).
As part of the Company?s business strategy to accelerate the growth of non-oil & gas assets through strategic partnership, the Company has divested two business units in 2012, namely the Power (Medco Power Indonesia or MPI) for 51 percent ownership to Saratoga Power and the Fuel Storage & Distribution (Medco Sarana Kalibaru or MSK) for 63.88 percent ownership to Puma Energy.
As a result, MedcoEnergi has not consolidated sales and revenues of MPI and MSK into the 2012 Company?s financial book. On the other hand, the Company?s Coal Mining business unit had commenced sales in October 2012 and contributed to sales with a total of USD 9.09 million.
The drilling services business unit made significant revenue gains, amounting to US$ 17.8 million, compared to US$ 8.7 million in 2011. In total, all non-oil & gas business units has contributed to total sales and operating revenues of US$ 36.0 million in 2012, an increase of 109 percent from US$ 17.2 million in 2011.
With a strong operational performance in 2012, the Company has confidently written off several non-performing assets (impairment) in 2012, including Merangin exploration asset that will be relinquished to the government due to its marginal economics and other MedcoEnergi?s subsidiaries in non oil and gas business unit such as bio-ethanol plant at Lampung and MSK, the fuel storage and distribution business unit.
The Company also booked a deferred tax asset at the Company level and one dry-hole exploration well at SCS (South Central Sumatra) Block in the P&L account. The total impairment, deferred tax asset and dry hole well amounts to US$51 million.
With the incorporation of this amount, the 2012 net income attributable to shareholders is recorded at US$12.6 million.
In 2012 the Company has also successfully moved forward on its Major Capital Projects, particularly for Senoro upstream, DSLNG, EOR Pilot Rimau, Block A and Libya 47 projects.
Editing by Benget Besalicto Tnb.