LISTED COMPANY - JAKARTA. PT Medco Energi Internasional Tbk (MEDC) reported a significant decrease in profits in 2023, with Medco's earnings falling by double digits.
According to the financial report released on Tuesday (2/4), Medco recorded a net profit of US$ 388 million for the year 2023. This represents a decrease of 27.8% year on year (YoY) compared to the previous period's US$ 538.13 million.
Similarly, Medco's net income also corrected by 3% to US$ 2.24 billion. In the same period the previous year, Medco recorded the company's net income at US$ 2.24 billion.
Meanwhile, Medco's cost of goods sold in 2023 increased to US$ 1.21 billion from the previous US$ 1.06 billion. In line with the correction of the company's net profit, Medco also recorded a gross profit decrease of 16% to US$ 1.03 billion.
Read Also: Laba Bersih Turun 37% di 2023, Begini Tanggapan Medco Energi (MEDC)
Regarding the performance results throughout 2023, MedcoEnergi CEO Roberto Lorato explained that the decline in oil and gas prices in 2023 was the main cause of the correction in Medco's net profit.
"In addition, it is also due to the reduced contribution from Amman Mineral Internasional (AMMN)," Roberto explained to Kontan on Tuesday (2/4).
Despite Medco's performance declining in 2023, Kiwoom Securities analyst Miftahul Khaer projects that Medco will grow positively in 2024.
Read Also: Medco Energi (MEDC) Profit Falls 37% in 2023
He believes this is in line with Medco's productivity forecast, which is expected to exceed 2023. In addition, Miftahul also said that Medco's performance was boosted by the completion of the acquisition of Block 60 in western Oman at the end of 2023.
"In addition, we see that our Oman block will also be more efficient in terms of operational costs, so we think the margin will be more competitive," he said.
Therefore, Miftahul still recommends buying MEDC with a target price of Rp 1.650 per share.
