Medco Energi, Owned By The Late Conglomerate Arifin Panigoro, Successfully Raised A Profit Of IDR 672.24 Billion From The Previous Loss Of IDR 2.75 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - The oil and gas company owned by the late conglomerate Arifin Panigoro, PT Medco Energi Internasional Tbk (MEDC) managed to turn the net loss in 2020 into a profit in 2021.

In MEC's financial report, quoted Friday, June 10, the company posted a net profit of US$47.01 million or around IDR 2.75 trillion).

In 2021, MEDC also recorded an EBITDA of US$ 714 million, an increase of 44 percent year-on-year (YoY). Roberto Lorato, CEO of Medco Energi Internasional said, "We are pleased to report our strong financial performance.

"The net profit recorded last year was in line with the recovery of the previously low level of energy demand due to COVID-19 in 2020", said Roberto.

The three business segments, namely oil & gas, electricity, and mining, posted profits. MEDC recorded total revenue of US$ 1.32 billion or higher than its 2020 revenue of US$ 1.09 billion.

In detail, oil and gas sales contracts will be the largest contributor to MEDC's revenues throughout 2021, worth US$1.18 billion. Then the construction contract contributed US$ 32.09 million, followed by the US$ 25.30 million electricity sales contract.

Furthermore, the operating and service contracts recorded revenues of US$ 27.54 million, other service sales contracts of US$ 14.30 million, and rental and interest income of US$ 39.92 million.

MEDC's management explained that the average selling price of oil was US$68 per barrel, or 69 percent higher than in 2020, which was US$40 per barrel. The weighted average selling price of gas is US$6.5 per MMBtu, up 26 percent from 2020 at US$5.2 per MMBtu.

On the other hand, MEDC's net profit last year was also affected by dry holes and a decrease in the value of the Mexico Blocks 10 & 12 totaling US$ 28 million, and the decrease in the value of PT Api Metra Graha (AMG) of US$ 15 million.

This decrease was also offset by adjustments in the value of Sarulla by US$ 47 million and PT Donggi Senoro LNG (DSLNG) by US$ 25 million. Meanwhile, the realized capital expenditure or CAPEX was US$ 114 million.