Crushed By Amman Mineral Loss, Medco's Net Profit Drops To 37 Million US Dollars

Rupiah (Photo: Antara)

The energy issuer belonging to the Panigoro conglomerate family, PT Medco Energi Internasional Tbk (MEDC) recorded a net profit of US$37.18 million in the first semester of 2025 from the previous year which was recorded at US$202.2 million.

Meanwhile, Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased by 4 percent from the previous USD 650 million to USD 623 million. Although the average oil realization price fell 14 percent from USD 81 per barrel to USD 70 per barrel. The average gas realization price remained stable at USD 7 per mmbtu.

"The net interest was recorded at 37 million US dollars due to the decline in oil realization prices, negative contribution from AMMN, and the dry hole cost of 8.9 million US dollars," said MedcoEneri CEO Roberto Lorato in a statement to the media, Friday, August 1.

Just so you know, Amman Mineral International (AMMN) posted a net loss of US$31 million or a significant decrease from net profit of US$99 million yoy due to delays in the commissioning process of new smelters and precious metal refining facilities.

Meanwhile, the company's capital expenditures were recorded at 193 million US dollars, most of which were used for drilling in Block 60 Oman, development projects at South Natuna Sea Block B and Corridor, as well as PLTP completion projects for I-jen stage-I and East Bali PLTS on Medco Power.

On the other hand, net debt was successfully lowered to USD 2.1 billion with a net debt to EBITDA ratio remaining stable at 1.8x.

"Proactive debt management continues with the payment of USD 519 million bonds through tender offers and buybacks," he continued.

MedcoEnergi also issued Phase I IV Sustainable Bonds worth IDR 1 trillion in June.

In terms of operations, Medco recorded 143 mboepd oil & gas production or 7 percent lower than the same period the previous year mainly due to seasonally low gas demand and planned maintenance intensifies.

Nevertheless, he admitted that he was confident that in the future Forel and Terubuk Fields in Natuna, LTR Corridor expansion, development of Phase 2 task force and Subran Field, as well as expansion of the Bisat-C facility will significantly increase production in the second half of 2025.

On the other hand, Robert continued, the accretive acquisition of 24 percent of the Repsol's participation rights at Corridor PSC was completed on July 28. The company also successfully signed a multi-party domestic gas exchange agreement in May to increase domestic gas supply in the second half of 2025.

Robert said Medco is also targeting the discovery of commercial exploration at West Kalabau-1 wells, the Rimau Block can make its first production by 2026.

From electricity business units, electricity sales reached 1,994 GWh, slightly lower than 2,003 GWh in the first semester of 2024 due to planned maintenance at Riau IPP, earthquakes near the Geothermal facility Sarulla, and floods in Sumbawa PV.

"The impact of this incident was partially offset by the start of the PLTP I General phase-I project, 35 MW in February and the operation of the East Bali PLTS project, 25 MWp in June, both of which were inaugurated by the President of the Republic of Indonesia," he explained.

Meanwhile, AMMN's copper production reached 89 million pounds (Mlbs) and gold production reached 60 thousand ounces (Koz).

"The commissioning process for the precious metal refining facility began in the 2nd quarter of 2025, and succeeded in producing the first pure gold in mid-July 2025," he said.