Medco Energi (MEDC) Profit Falls 37% in 2023

April 02, 2024, 01.27 PM  | Reporter: Diki Mardiansyah
Medco Energi (MEDC) Profit Falls 37% in 2023

ILUSTRASI. Medco Energi (MEDC) Profit Falls 37% Last Year

ISSUER NEWS - JAKARTA. PT MedcoEnergi Energi Internasional Tbk (MEDC) reported a net profit of US$ 330.67 million in 2023, attributed to the parent entity's owners. This figure represents a 37% decrease from the US$ 530.88 million recorded in 2022.

According to an official statement from Medco, the company's revenue fell from US$ 2.24 billion in 2023 to US$ 2.31 billion in 2022.

Medco's CEO, Roberto Lorato, stated that the past year was both busy and productive. In 2023, he said, Medco successfully met all set targets for oil and gas production, electricity sales, production unit costs, capital expenditure, and debt reduction.

"We also increased cash dividends, amended the PSC Corridor, completed acquisitions in Oman, completed the Amman IPO, the largest IPO in Indonesia in 2023, and met our greenhouse gas emission reduction targets two years ahead of schedule," Lorato said in his official statement on Tuesday (2/4).

Furthermore, Lorato explained that the nearly US$ 331 million net profit was lower than in 2022 due to a decrease in oil and gas prices and a reduced contribution from AMMN.

"MedcoEnergi's share of net profit from AMMN was lower than the previous year due to heavy rainfall and delays in renewing export permits," Lorato said.

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The average oil and gas prices were also lower at AS$ 78/bbl, down US$18/bbl compared to AS$ 96/bbl in 2022, with the average gas price in 2023 at US$ 7/mmbtu. Despite lower prices, Medco's oil and gas economics remained robust, supported by low production costs and reserve additions.

Lorato stated that losses from the impairment of other non-cash assets were largely offset by non-cash gains, including the classification of Libyan assets as assets for sale and gains from the dilution of the AMMN IPO.

Capital expenditure, excluding acquisitions in Oman, reached AS$ 333 million, most of which was used to continue development projects in Natuna, Corridor, and the Ijen geothermal facility.

Meanwhile, MEDC's President Director, Hilmi Panigoro, said that since 2018, Medco has experienced significant growth in scale and profitability. After success in 2023, Medco is optimistic about the future of MedcoEnergi.

With growth, Hilmi said, Medco will remain committed to leadership in the ESG field, expanding renewable energy reach, developing a gas portfolio, and maintaining good relationships with stakeholders and investors.



Editor: Khomarul Hidayat

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