Medco Energi, The Company Owned By Conglomerate Arifin Panigoro, Lost IDR 2.69 Trillion In 2020

JAKARTA - PT Medco Energi Internasional Tbk recorded a loss of 189 million US dollars or around Rp. 2.69 trillion in its 2020 financial performance report due to low energy demand.

"Commodity prices have improved in 2021, but the pandemic is not completely over and gas volumes in some of the company's main markets are still low. We will remain disciplined and maintain flexibility to take advantage of the expected recovery," said CEO of Medco Energi Internasional Roberto Lorato in an official statement in Jakarta. , quoted from Antara, Wednesday 2 June.

In 2020, oil was only valued at 40.3 US dollars per barrel, down 36 percent compared to the previous year which reached 62.5 US dollars per barrel. Meanwhile, the gas price was recorded at 5.2 US dollars per million British thermal units (MMBTU), this figure was 23 percent lower than in 2019 which reached 6.7 dollars per MMBTU.

The company owned by conglomerate Arifin Panigoro noted that low gas demand and oil prices had caused EBITDA of only US$502 million or 20 percent lower than the 2019 achievement.

In the financial report, the issuer codenamed MEDC suffered a loss of 189 million US dollars, including one non-cash decline of 93 million US dollars in the fourth quarter of 2020.

"The low energy demand due to the pandemic has had a significant impact on the company's performance. We immediately made adaptations to protect the health and safety of workers, support the community around operations and maintain company liquidity," said Roberto.

Despite the loss, Medco Energi reported a net profit of US$9 million for the fourth quarter of 2020, before the decline in value and as oil prices recovered.

Subsidiary PT Amman Mineral Nusa Tenggara (AMNT) also reported a profit of US$25 million with productive ore from the seventh phase of development and supported by higher copper and gold prices.

Meanwhile, oil and gas capital expenditures reached US$ 144 million to complete the Meliwis project in East Java and the drilling of four exploration wells in Natuna.

The electricity capital expenditure reached 63 million US dollars for the development of the Riau CCPP and the development of the Ijen geothermal exploration.

"Operating cash after Capex is positive despite low energy demand given Ophir's spending and synergies," said Roberto.

The company's cash and cash equivalents amounted to 446 million US dollars. Proactive shareholder support and liability management enable deleveraging to continue.

Throughout 2020, Medco's debt was recorded at 27 billion US dollars, a decrease of 15 percent compared to 2019. Group debt of 2.3 billion US dollars fell by six percent, net debt of 20 billion US dollars decreased by four percent, and net debt to EBITDA reached 4.2 times.