Energi Mega Persada (ENRG) Records Net Profit of US$ 17.66 Million Q1-2024

FINANCIAL REPORT - JAKARTA. PT Energi Mega Persada Tbk (ENRG) has reported a net profit of US$ 17.66 million for the first quarter of 2024.

ENRG's CEO, Syailendra S. Bakrie, stated that the company has successfully maintained consistent performance in terms of production and finance throughout the first three months of this year.

The net profit of US$ 17.66 million in the first quarter of 2024 represents a 1% year-on-year (YoY) increase compared to the same period in the previous year, which was US$ 17.49 million.

On the other hand, ENRG's revenue in the first quarter of 2024 reached US$ 97.27 million, a decrease of 6% YoY from the first quarter of 2023, which was US$ 103.31 million.

"Please remember that we just completed the acquisition of the Siak and Kampar assets (Riau, Sumatra) in the last week of March 2024. These two assets produce about 2,300 barrels of oil per day. The performance of these two assets will be fully consolidated into our portfolio in the Q2 2024 period," explained Syailendra in an official statement on Tuesday (30/4).

Syailendra continued, that oil and gas production has also shown fairly consistent performance year on year.

Net oil production increased 2% from 6,135 barrels per day (bpd) to 6,267 bpd. Meanwhile, net gas production decreased 3% from 154 million cubic feet per day (MMSCFD) to 149 MMSCFD. The average selling prices of oil and gas were US$ 80 per barrel and US$ 6.3 per mcf, respectively.

ENRG's Vice President Director & CFO, Edoardus Ardianto, stated that they are continuously striving to increase production this year.

"In addition to expanding by acquiring new assets, we are also trying to continuously increase organic production. We hope that the financial performance of Q2 2024 will improve," explained Edoardus.

As noted by Kontan, ENRG has budgeted a capital expenditure (capex) of US$ 150 million for 2024, which will be allocated for drilling activities, focused on increasing oil and gas reserves.

ENRG's Director & Chief Investor Relations Officer, Herwin W. Hidayat, stated that the company's capex realization throughout 2023 was about US$ 125 million. The capex target for 2024 is around US$150 million.

"This means there is an increase of about 20% for the company's capex from 2023 to 2024," Herwin told KONTAN on Friday (26/4).

The oil and gas issuer affiliated with the Bakrie Group is targeting a 10% - 15% increase in oil and gas production, or about 37-38 thousand barrels equivalent per day in 2024.

Herwin stated that throughout 2023, ENRG managed to produce about 5,700 barrels of oil per day and 164 million cubic feet of gas per day from the oil and gas assets operated by the company.

"In 2024, we hope to increase our oil and gas production by 10-15% from last year," said Herwin.

He stated that it should be noted that in addition to production growth from existing assets (organic growth), ENRG is also in the process of acquiring two oil assets in Riau, Sumatra.

These two assets are commercially produced and it is expected that this acquisition process can be completed in the first half of 2024.

Furthermore, Herwin stated that currently, more than 90% of oil and gas production comes from four assets operated by ENRG, namely the Bentu gas asset (Riau), the Kangean gas asset (East Java), the Malacca oil asset (Riau), and the Sengkang gas asset (South Sulawesi).

According to Herwin, the plan for this year is to focus on optimizing oil and gas production from these four assets. Subsequently, they will also conduct drilling in exploration and development wells, as well as mapping oil and gas reserve locations in other assets such as in Tonga and Gebang (both in North Sumatra), Korinci Baru (Riau), Working Area - B (Aceh), and others.