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IDX Ticker: MEDC-IJ Jakarta, 26 August 2024
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Highlights 3
Operational Performance 4-6
Financial Performance 7-8
ESG and Climate Change 9-13
Outlook 14-15
The following presentation has been prepared by PT Medco Energi Internasional Tbk. (“Company” or “MedcoEnergi”) and contains certain projections, plans, business strategies, policies of the Company and industry data in which the Company operates in, which could be treated as forward-
looking statements within the meaning of applicable law. Any forward-looking statements, by their nature, involve risks and uncertainties that could prove to be incorrect and cause actual results to differ materially from those expressed or implied in these statements. The Company does not
guarantee that any action, which may have been taken in reliance on this document will bring specific results as expected. The Company disclaims any obligation to revise forward-looking statements to reflect future events or circumstances.
The use by MedcoEnergi of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of MedcoEnergi by MSCI. MSCI services and data
are the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
PT Medco Energi Internasional Tbk ESG Risk Rating places it 25th in the Oil & Gas Producer industry and 23rd in the Oil & Gas Exploration and Production sub industry assessed by Sustainalytics. This Sustainability Report contains information developed by Sustainalytics (www.sustainalytics.com).
Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely,
2 accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers
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Production Power Sales
On track to meet operational guidance
mboepd GWh
1H 2024 : 153 1H 2024 : 2,003
Oman acquisition APAC “Deal of the Year” 2024 Guidance : 145 - 150 2024 Guidance : 4,100
Capex Cash Cost
Vietnam and Libya divestment closed US$ mn US$/boe
1H 2024 : 188 1H 2024 : 7.0
2024 Guidance : 430 2024 Guidance : <10
Total 2023 Dividend US$70mn
EBITDA Net Income
Tender Offers & Buybacks
US$ 650 mn US$ 201 mn
Fitch and S&P Credit Rating upgrades
Average Liquids US$81/bbl
AMMN renewal export permit & smelter Realised Indexed Gas US$10/mmbtu
commissioning Prices Fixed Gas US$6/mmbtu
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Ahead of guidance
1H 2024 Actual (mboepd) Guidance
• Production 153 mboepd, above 163 160 153 145 -150
guidance but lower compared to 1H 94 50%
129 128 111 103
2023 due to Corridor working 60 19%
interest reduction, lower Singapore 34 34 42 47 31%
32
piped gas demand, and Vietnam 2021 2022 2023 1H 2024 2024 Guidance Fixed &
divestment Indexed
Gas + Liquid
Composition
• Power 2,003 GWh sales, 20% from Liquids Gas Indexed Priced Gas Fixed Priced Gas
Renewables Power Sales (GWh) Guidance
3,993 4,155 4,100
2024 Guidance 855 801 700
2,718
• Oil & Gas production: 145 – 150 871 2,003
409
mboepd 1,847
3,138 3,354 3,400
1,594
• Power sales guidance: 4,100 GWh 2021 2022 2023 1H 2024 2024 Guidance
4
Renewable IPP Gas IPP
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On track to meet guidance
Oil & Gas Cash Cost/Unit (US$/boe)
• Oil & Gas cash cost < US$10/boe 68
96
40 79 81
• 1H 2024 Capex US$152mn
9.1 9.5 <10
• Full year guidance US$350mn, ~54% 6.9 8.3 7.0
drilling capex, 87 wells planned full 2020 2021 2022 2023 1H 2024 2024
year Cash Cost Realised Oil Price
Guidance
Power Capex (US$mn)
430
• 1H 2024 Capex US$36mn. Full year 100
guidance US$80mn for Ijen, Bali East 302
33
300
80
45
PV, ELB Add on and Bonjol 207 188
63 36
114 269 255 250
• 1H 2024 completed drilling wells in 144 31 152
83
Ijen, confirming up to 40MW 2020 2021 2022 2023 1H 2024 2024
capacity Oil & Gas Medco Power1 Oman 60
Guidance
5 1) Power capex is net working interest
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11 active rigs with US$191mn drilling capex spend in 2024
Drilling Activity Q1 2024 Q2 2024 Q3 2024 Q4 2024
Bualuang
BB-19ST1
Bualuang/Rig Hakuryu & BB-20ST1
& BB-16ST1
Corridor
Suban/Rig Apexindo-10 Suban 27 Suban 25*
Rawa/Rig Dreco Rawa 53
Dayung/Rig Dreco Dayung 2B & 5B
Sumpal/Rig EPI AR-09 Sumpal Shallow-1 Sumpal 9
Natuna
Pending: Rig picture from
Forel/Rig Soehanah Forel A-01
West Belut/Rig Soehanah WB H-01/02/03 communication team
Terubuk/Rig Soehanah Terubuk L-01/02/03
BB-12-ST &
Belida/Rig Soehanah
BB-01/BB-22
Madura
Meliwis-3/Rig Soehanah Meliwis-3
Senoro
Senoro/Rig 04.3 Senoro 16,18, 19, & 20
Oman
Oman 60/Rig ABJ – 110 Bisat Producing Wells
Oman 60/Rig ABJ – 111 Bisat Producing & Water Disposal Wells
Oman 60/Rig ABJ – 205 Bisat Producing & Water Disposal Wells
Oman 60/Rig ABJ – 210 Bisat Producing Wells Exploration & ABB Wells
Geothermal
Ijen/Rig EPI-09 Completed 6 Wells Natuna – Belida
Bonjol Slimhole Drilling
6 Development Appraisal Exploration
*Rig selection in progress
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Strong fundamentals supported by favorable oil price
EBITDA (US$mn)
• 1H 2024 EBITDA US$650mn above
163 160
1H 2023 US$634mn, higher oil and gas 153
prices offsetting reduced Corridor working 94
interest
• Q2 2024 EBITDA US$322mn slightly lower 1,593
1,255
than Q1 2024, US$328mn, due to 667 650
turnaround activities in Bualuang and 2021 2022 2023 1H 2024
Corridor Production (mboepd)
Net Income (US$mn)
• Net Profit US$201mn, higher than 96
US$119mn in 1H 2023, due to significant 78 81
68
contribution from AMMN 531
253 331
• Closed Vietnam and Libya divestments, 55 201
cash proceeds US$120mn 47
73
278 276 99
102
(26)
• AMMN Renewal Export Permit and 2021 2022 2023 1H 2024
Smelter Commissioning
Realised Oil Price (US$/bbl) AMMN Net Income
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Delivering results to reward all stakeholders
Equity MEDC vs Brent vs IDX LQ 45
• Average annual shareholder return from 2022 7 Jul 2023: +189%
CAGR 57%1 . Share price outperformed both Brent The Successful IPO
of AMMN
and IDX LQ45
• 2023 dividends US$70mn, IDR45 per share, 2022 12 Dec 2023:
dividends US$65mn, IDR39 per share Completed Oman
Acquisition +9%
Credit 22 Aug 2022:
1H 2022 Results Post Acquisition of
-6%
ConocoPhillips Indonesia Asset
• Upgraded by S&P and Fitch Credit Ratings to BB-,
reaffirmed at idAA- by Pefindo 1/3/2022 4/1/2022 7/1/2022 10/1/2022 1/1/2023 4/1/2023 7/1/2023 10/1/2023 1/1/2024 4/1/2024 6/30/2024
MEDC Brent IDX LQ45
• Natuna, Ophir and Corridor acquisition debt
Restricted Group (RG) Debt (US$ bn) and Net Debt to EBITDA
repaid, debt back to 2018 level. On track to repay
4.2
Oman acquisition debt within 2 - 3 years 3.3 3.4
2.7 2.1
1.4 1.7
• 1H 2024 US$202mn tender offers & buybacks of
2.7 2.8 2.7
USD Notes. July-August further buybacks of 2.5 2.6 2.5
2.2 2.3 0.1 2.2
2.0 2.0 2.1
US$29mn. 1.7 1.8
• 1H 2024 US$82mn negative carry for IDR bonds
scheduled for Q3 and Q4 maturity
2018 2019 2020 2021 2022 2023 1H
• 1H 2024 Net Debt to EBITDA2 1.7x Negative Carry Gross Debt Net Debt Net Debt to EBITDA 2024
8
1) CAGR 3 January 2022 – 30 June 2024
2) Restricted Group. 2018, 3.6x and 1H 2024, 2.2x at mid-cycle price US$65/bbl
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Reports in accordance with 2016 GRI Standards and subsequent updates
Improved quality of disclosure in our reporting by
increasing the number of GRI performance indicators
disclosed and assured by Ernst & Young year-on-year
96 indicators
93 indicators
86 indicators
75 indicators
PT Medco Energi International Tbk’s ESG
Risk Rating places it the 8th percentile in the
63 indicators
Oil & Gas Producers industry and 9th
percentile in the Oil & Gas Exploration and
55 indicators
Production subindustry assessed by
As of 2023, PT Medco Energi Internasional, Tbk.
Sustainalytics
received an MSCI ESG Rating of A.
Copyright ©2024 Sustainalytics. All rights reserved. This
DISCLAIMER STATEMENT Sustainability Report contains information developed by
THE USE BY PT MEDCO ENERGI INTERNASIONAL TBK OF ANY MSCI ESG
Sustainalytics (www. sustainalytics. com). Such information
RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI
LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT
and data are proprietary of Sustainalytics and/or its third
31 indicators
CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR party suppliers (Third Party Data) and are provided for
PROMOTION OF PT MEDCO ENERGI INTERNASIONAL TBK BY MSCI. MSCI informational purposes only. They do not constitute an
SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION endorsement of any product or project, nor an investment
PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI advice and are not warranted to be complete, timely,
NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. accurate or suitable for a particular purpose. Their use is
subject to conditions available at
https://www.sustainalytics.com/legal-disclaimers.
MedcoEnergi Sustainability Report: MedcoEnergi Climate Change Strategy:
http://www.medcoenergi.com/en/subpagelist/view/36 https://www.medcoenergi.com/en/page/view/3363
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AAA We support
AA
CDP Score Report -
A A A
Climate Change
BBB BBB Since 2022, PT Medco Energi
Internasional Tbk received an MedcoEnergi’s
Average Performance
BB BB BB
MSCI ESG Rating of A. CDP Score Oil & Gas
Global
Extraction & Asia
Average
Production
Dec-19 Dec-20 Nov-21 Dec-22 Nov-23
2021* C C B- B-
49.9 2022 B C C C
Severe Risk 46.9
Severe Risk
2023 B B C C
42.2
Severe Risk
Severe Risk Risk Categories *First time reporter, not published
40 36.7 NEGL LOW MED HIGH SEVERE
Leadership (A/A-) : Implementing current best practices
High Risk 0-10 10-20 20-30 30-40 40+
Management (B/B-) : Taking coordinated action on climate issues
High Risk
29.6 Ranking 23 out of 307 Awareness (C/C-)
Disclosure (D/D-)
: Knowledge of impacts on, and of, climate issues
: Transparent about climate issues
Medium Risk Oil & Gas Producers
30 1 Nov 2023
Medim Risk
MEDC admitted to IDX LQ45
2019 2020 2021 2022 2023 LOW CARBON LEADERS
10 MSCI & Sustainalytics Disclaimer Statement provided
since Nov 2022
in the Content Slide
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Achieved emissions reduction targets ahead of plan
Implemented
Achieved Reduced Oil & Gas Scope 1 & 2
2025 Interim Targets
emissions1 41 GHG reduction
Initiatives
throughout 2023
22% 147,963 tCO2e
2
years emission reductions
ahead 2024 Ongoing Initiatives
of plan
Reduced methane (CH4) • Flare avoidance during well clean up
and testing
emissions1
• Amine process operating
• GHG Scope 1 & 2: reduce by 20% optimisation
40%
• Methane: reduce by 25% • Gas engine & turbine generator
optimisations
• Permanently switching generators to
renewable energy supply
11
1Reduction from 2019 base year
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Expanding supply of clean energy
• Phase 1 development of 34 MW
geothermal facilities
• Completed drilling wells, confirming up
to 40MW capacity
• Overall project progress ~93%,
commercial operation in Q1 2025
• Project cost: ~US$140mn
• Medco (51%), Ormat (49%)
Timeline:
Q2 2024 Q3 2024 Q4 2024 Q1 2025
Completed Drilling and Construction & Pre- Mechanical Completion Commercial Operations
Well Testing Commissioning & Commissioning
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Expanding supply of clean energy
• Over 2GWp of PV panels and
500MW of battery energy storage
• Export to Singapore premium
market
• Preparation for Offshore and
Onshore Surveys
• Net equity capex ~US$300mn
Timeline:
Aug 2023 2024 2025 2027 2028
Conditional FEED Final Investment Construction and Commercial Operations
Approval by EMA Engineering Decision Commissioning
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US$ US$
145 - 150
mboepd
4,100 GWh 430 mn <10/boe <2.5 x Mid-cycle price at US$65/bbl
1H 2024: 153 mboepd 1H 2024: 2,003 GWh 1H 2024: US$188mn
321
1H 2024: US$7.0/boe 1H 2024: 2.2x
New reserves from Natuna, Corridor, Senoro, Start production from West Belut and Forel
Bangkanai and Oman Block 60 fields
Complete Bali Solar PV and Ijen Geothermal.
Selective portfolio management
Progress Bulan Solar PV
Continuing dividend payments and debt Maintain ESG improvement trajectory and
repayments expand Energy Transition capabilities
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Oil & Gas
• Aggregating large, high-margin, producing assets
• Add value & extend reserve life through low-risk exploration in producing assets
• Increase efficiency, abating emissions, growing gas portfolio as a transition fuel
Clean Power • Expand clean and renewable portfolio with larger scale projects: PV, geothermal
• Build expertise in low-carbon energy: CCS, LNG and hydrogen
• Continue positive momentum on ESG metrics and Credit rating
Medco has a ~21% investment in AMMN, a separately listed entity with an independent Board
Copper & Gold Mining
• World-class copper resource with significant discoveries on existing license
• Well positioned to capitalize on growing global demand for copper
• AMMN successfully IPO’d on 7 July 2023, ~US$54bn market capitalization
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PT Medco Energi Internasional Tbk The Energy Building 53rd Floor SCBD Lot 11A Jl. Jend. Sudirman, Jakarta 12190 Indonesia P. +62-21 2995 3000 F. +62-21 2995 3001 E. investor.relations@medcoenergi.com Website : www.medcoenergi.com
Names mentioned 5 people and organisations named in the text · linked when the evidence is strong
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MSCI ESG Research LLC
p.2
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org
PT Medco Energi International Tbk’s ESG Risk Rating
p.9
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RESEARCH LLC
p.9
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