Medco Energi, Conglomerate Arifin Panigoro's Company, Earns Rp73 Billion In Profit In The First Quarter Of 2021

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Medco Energi Internasional Tbk announced its consolidated financial performance with a profit of 5.1 million US dollars or equivalent to Rp73.7 billion during the first quarter of 2021.

"The performance results have improved with positive net profit and increased EBITDA," said CEO of Medco Energi Internasional Roberto Lorato in a statement in Jakarta, quoted from Antara, Monday, June 28.

Based on the financial report, the net profit of the company owned by conglomerate Arifin Panigoro was obtained from oil and gas operations and the support of its subsidiary PT Amman Mineral Nusa Tenggara which generated positive income.

The achievement of EBITDA of 159 million US dollars is almost double from the fourth quarter of last year due to the recovery of commodity prices.

Oil prices were recorded at 58.8 US dollars per barrel, 14 percent higher than last year's price of 51.3 US dollars per barrel. Meanwhile, gas prices still tend to be stable at US$5.7 per MMBtu.

"Commodity prices have gradually recovered, but gas demand is still low," said Roberto.

He further said that his company was suspending capital expenditure due to low gas demand.

Until March 31, 2021, oil and gas capital expenditures amounted to 6 million US dollars. Meanwhile, electricity capital expenditures amounted to US$ 3 million or Rp43.3 billion for the continuation of the commissioning process for the 275-megawatt CCGPP project in Riau.

Net debt to EBITDA tripled significantly following recent increases in commodity prices and deleveraging. Meanwhile, restricted group debt of US$2.3 billion decreased by 14 percent, and net debt of US$1.8 billion, down 7 percent from the first quarter of 2020. The consolidated debt reached US$2.7 billion, down 19 percent from the first quarter of the year 2020.

The company with the stock code MEDC also has cash and cash equivalents of US$695 million. The 2021 bonds due are guaranteed in escrow and through proactive liability management, currently, the average loan life is 5.1 years.

"We have produced a positive initial performance in 2021. Medco Energi will continue to support the recovery and renew our commitment to long-term sustainable economic and social development," said Medco Energi President Director Hilmi Panigoro.