Home » Business » Medco Owned by Arifin Panigoro Large Loss of IDR 1.82 Trillion

Medco Owned by Arifin Panigoro Large Loss of IDR 1.82 Trillion

Jakarta, CNBC Indonesia – The mineral and energy mining company PT Medco Energi Internasional Tbk (MEDC), during the January-September 2020 period posted a consolidated net loss of US $ 130.11 million (IDR 1.82 trillion, assuming an exchange rate of IDR 14,000 / US $).

This performance is inversely proportional to the company’s achievements in the same period in 2019, which recorded a net profit of US $ 19.27 million.

The loss value per share reached US $ 0.00729 compared to the net profit per share at the end of September 2020 which was US $ 0.00108.

One of the reasons for this loss is the decline in company revenue by 18.27% year on year (YoY) to a value of US $ 792.89 million, or the equivalent of Rp.11.10 trillion. This value is down from the performance in the third quarter of last year which was valued at US $ 970.24 million.

There was a decrease in revenue in the company’s three business lines. Revenue from oil and gas sales fell to US $ 678.35 million, from US $ 852.71 million previously.

Sales of electricity and related services decreased to US $ 111.93 million from US $ 116.21 million, while service revenues increased to US $ 2.60 million from US $ 1.31 million previously.

The decline in the performance of the company owned by Arifin Panigoro occurred due to the impact of falling energy demand and commodity prices due to the Covid-19 pandemic.

Oil prices are US $ 39.5 / month, 37% below 2019 (US $ 62.5 / month) and gas prices are US $ 5.1 / month, 25% below 2019 (US $ 6.9 / month).

Oil prices in the third quarter of 2020 recovered to US $ 40.6 / bbl, up 52% ​​from US $ 26.8 / bbl in the second quarter of 2020. However, gas prices continued to fall in the third quarter of 2020, from US $ 5.2 / mmbtu in the second quarter of 2020 to US $ 4.6 / mmbtu in the third quarter of 2020, due to the contractual linkages between several gas contract prices and quarterly oil prices. previous.

In addition, losses were also caused from the operational side following dry holes in deep sea drilling in Mexico, low gas prices related to the second quarter of 2020 oil prices and continued low electricity demand at Medco Power.

Meanwhile, PT Amman Mineral Nusa Tenggara (AMNT) actually started to book a profit in the third quarter of 2020 worth US $ 21 million. This is the first time the gold mine has posted a profit since 2016, with the first production from phase 7 benefiting from higher copper and gold prices.

From an operational point of view, Medco’s oil and gas production reached 100 million barrels of oil equivalent per day (mboepd), according to the previous target even though gas demand continued to be far below normal before the Covid-19 pandemic level.

The two-well platform drilling program in Kerisi, South Natuna Sea Block B PSC in July increased oil production and gas deliveries.

Meanwhile, the commercial exploration process is still continuing in this block with the Bronang-2, Kaci-2, West Belut-1 and Terubuk-5 wells. This well will be developed for operations in 2021-2022.

Medco Power generated sales of 1,956 GWh. A recent exploration well at Blawan Ijen, East Java has discovered a steam reservoir and further wells are being developed to prove the commercial viability of future geothermal development.

Meanwhile, the construction of PLTK Riau 275MW has been completed 91% and the 26MWp PV facility in Sumbawa has started.

Phase 7 development at AMNT begins accessing productive ore with increased production starting April 2020. AMNT produces 192 Mlbs of copper and 73 Koz of gold from mining ore and stockpile processing.

Until that period, the company has poured capital expenditure (capex) worth US $ 194 million to complete the Meliwis project in East Java, exploration drilling in the Natuna sea and US $ 47 million for the construction of CCPP Riau and geothermal exploration in Ijen by Medco. Power.

“I would like to thank the shareholders who subscribed to the recent rights issue and have shared Medco’s success over our 40 year history. With the Kansai Electric alliance, exploration success, and AMNT now making a return, it is great to see Medco emerge from these are difficult times as a stronger company, “said Hilmy Panigoro, President Director of Medco in his official statement, quoted on Tuesday (12/1/2020).



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