Medco's Profit Drops 60.58 Percent In Semester I-2023, This Is The Cause!

Rupiah illustration (Photo: dock. Antara)

JAKARTA - PT Medco Energi Internasional Tbk (MEDC) recorded a decrease in net profit of up to 60.58 percent to 119 million US dollars in Semester I-2023. This amount is compared to the same period the previous year at 303.05 million US dollars.

Medco CEO Roberto Lorato said the company's declining net profit was due to a lower contribution from PT Amman Mineral Internasional Tbk (AMMN). In addition, the realization of lower oil and gas prices, which is partly offset by higher oil and gas volume.

"The price of oil fell 30 percent (yoy), but has recovered, the AMMN IPO in July 2023 was a huge success and the export acceleration is underway to catch up on the postponement in the first semester of 2023," Roberto said quoting Antara, Tuesday, October 3.

The portion of the net profit of oil and gas mining companies from AMMN was USD 27 million, or a decrease of USD 103 million compared to the first semester of 2022, due to the delay in selling copper and gold for four months due to delayed export permits.

"AMMN continues to operate while waiting for permits and restarting exports in July," said Robertus.

Meanwhile, the average oil and gas price is 75.2 US dollars per barrel and 7.2 per mmbtu, or down 29.1 per barrel compared to 2022 which is 104.4 per barrel.

On the other hand, the revenue of the issuer made by Hilmi Panigoro was recorded to have slightly increased by 0.72 percent (yoy) to US $ 1.11 billion, compared to the previous US $ 1.10 billion in the first semester of 2022.

In detail, the company's revenue consists of an oil and gas sales contract worth US$941.99 million, a construction contract worth US$ 106.26 million, and an electricity sales contract worth US$24.22 million.

In addition, the company also posted revenue from operating contracts and services worth 12.72 million US dollars and other service sales contracts worth 8.91 million US dollars.

"With strong operational performance, the granting of conditional electricity import permits for the 600 MW solar power plant project from the Singapore government, and the successful AMMN IPO, I am proud that MedcoEnergi can continue to provide long-term value and benefits to shareholders and contribute to energy transition efforts in the country," he said.