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20240401_MEDC_Laporan Informasi dan Fakta Material_31622332_lamp5.pdf
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PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) Jakarta, 4 April 2024
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Amri Siahaan Roberto Lorato Anthony R. Mathias
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Chief Adminstrative Officer Chief Executive Officer Chief Financial Officer
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Highlights 4
Operational Performance 7
Financial Performance 13
ESG Update 16
Outlook 19
Appendix 23
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,
3 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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Roberto Lorato
Chief Executive Officer
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Build long-term value with a portfolio of sustainable energy and natural resource businesses
Oil & Gas Clean Power Copper & Gold Mining
• Met all operational guidance • Singapore EMA awarded • Successful AMMN IPO
conditional import permit for
• Favorably amended the • Medco owns ~21% of AMMN,
Pulau Bulan PV
Corridor PSC a ~US$40+bn listing
• Ijen Geothermal drilling and
• Signed new GSAs for Natuna • Copper production 312Mlbs,
construction reached 60%
and Corridor PSCs and gold production 463Koz
complete
• Completed Oman acquisition • Smelter construction on
• FID on Bali East PV and Batam
schedule, ~76% complete
CC expansion
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US$ US$ Sustainalytics
160 mboepd US$ US$
1,255mn 3,295 mn 29.6
333 mn 8.3 /boe US$ US$ MSCI CDP
4,155 GWh 331mn
Oil & Gas: US$261mn
Power: US$72mn 65 mn A B
Met all Operational Guidance Met Deleveraging Targets
New GSAs & Corridor PSC Amendment Increased Returns to Shareholders
Accretive Oman Acquisition Regional ESG Leadership
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Roberto Lorato
Chief Executive Officer
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Achieved emissions reduction targets ahead of plan
• Scope 1&2 emissions Scope 1&2 and Methane Emissions Total Recordable Incident Rate
0.92 0.70 0.90
reduced by 22% and 100% 0.77
Methane emissions by 88%
0.58
2025 Interim Target
85% 0.44
40% 81% 78%
80%
0.33 0.33
0.39
0.24
0.16
• Continuous safety & 0.00 0.00 0.00
environmental 2019 2020 2021 2022 2023
improvements Oil & Gas TRIR Medco Power TRIR
International Association of Oil & Gas Producers
5.4
Oil Spill (bbl)
• Medco Power three 100% 137
2025 Interim Target
consecutive years 84% 81% 82% 70%
with zero TRIR 60%
164 58
40 36
18
2019 2020 2021 2022 2023 Target 2025 2019 2020 2021 2022 2023
8
Oil & Gas Scope 1&2 Emissions (million tCO2e) Oil & Gas Methane Emissions (thousand tCO2e)
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Significant growth in scale since 2018
• Met all 2023 Operational guidance Oil & Gas Production (mboepd) Oil & Gas Cash Cost (US$/boe)
163 160
145
• In 2024, increased exposure to
liquid index prices, but lower 85
103 100 94 129 128 100
50%
Singapore piped gas demand and 64 60 60 <10.0
52 20% 9.9 9.5
Corridor working interest post PSC 8.4 9.1
6.9
8.3
extension 39 40 34 45 30%
33 34 32
2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024
• Maintain Oil & Gas cash cost sub Liquids Gas Indexed Priced Gas
Guidance
Fixed Priced Gas
Guidance
US$10/boe Power Sales (GWh) Capex (US$mn)
430
• 2024 Oil & Gas capex US$350mn, 3,993 4,155
801
4,100
700 80
855 329 333
focused on Natuna, Corridor 2,704 2,591 2,639 2,718 61
313 302
33 72 98
developments and Oman 60 drilling 843 802 817 871 3,354 3,400
119
207
3,138 63
268 114 269 261 252
• 2024 Power1 capex US$80mn 1,861 1,789 1,822 1,847 194
144 31
83
focused on Ijen Geothermal and 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024
Guidance Guidance
Bali PV Renewable IPP Gas IPP Oil & Gas Oman 60 Medco Power
9
1) Medco Power Net Working Interest
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Improved economics to support further gas development
Corridor PSC Amendment:
• Corridor PSC converted to Cost
Recovery with improved terms
• New developments initiated in
Suban, Letang, Tengah and Rawa
fields plus a large seismic
program
Corridor & Natuna GSAs Renewal:
• Corridor 2024 contract production
~700 bbtud, 83% sold to domestic
and 17% exported
• Natuna 2024 contract production
~200 bbtud, 100% exported
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Immediately accretive asset with long production plateau
• December 2023 completed acquisition of
20% non-operating interest in the producing
Block 60 and exploration Block 48
• Low-cost oil production with advantageous
terms; oil split up to 35%, gas up to 40% and
all Tax borne by government
• US$713mn consideration financed with 70%
debt and 30% cash
• Long, 2048 production plateau with
significant future value addition from
discovered gas developments and
exploration
• Assigned Medco personnel to progress gas
developments, technology and sustainability
processes
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We have a proven track record for extending reserves life
• Accretive acquisitions have added cost Extending Economic Life
effective Reserves & Resources 5-yr 2P RRR : 233%
5-yr 2P FD&A : US$6.7/boe
160 mboepd
10.6 years
▪ 2023 5-year, 2P FD&A cost US$6.7/bbl 85 mboepd
240 199 216 539
10.7 years
▪ Natuna (2016), Ophir (2019), Corridor
282
(2022) and Oman (2023)
• Efficiently converted Resources into
Reserves 2018 Acquisition1 Production Additions 2023
2P RLI Production 2P Reserves (mmboe)
▪ 2023 5-year, 2P F&D cost US$4.0/bbl
Creating Value from Acquisitions
▪ Projects in Senoro (2016), Block A
817
(2017/18), Bualuang (2019), East Java 2P Additions
111 ADDITIONS
(2019), Natuna (2022/23)
▪ Progressing projects in Natuna, 385
706 ACQUIRED
274
Corridor, Senoro, Bangkanai, East 251 ACQUIRED
RESERVES
RESOURCES
ACQUIRED
Java, Tanzania and Oman RESERVES
134 PRODUCTION
Acquisition Date2 2023 2023
12 1Excludes 2016 Natuna acquisition, 34 mmboe Acquired 2P Reserves (mmboe) Contingent Resources (mmboe)
2Certified reserves at acquisition date for Natuna (2016), Ophir (2019), Corridor (2022), Oman (2023)
Resources move to 2P Reserves (mmboe) Cumulative Production (mmboe)
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Anthony R. Mathias
Chief Financial Officer
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Resilient profitability
• Net Income and EBITDA below EBITDA (US$mn) Oil & Gas Cash Cost (US$/boe)
96
2022 due to commodity prices
78
68
• AMMN Net Income lower due to
severe rainfall and export permit
1,593 9.5
delay 1,255
6.9
8.3
667
• Oil & Gas economics supported by
2021 2022 2023 2021 2022 2023
low cash cost and reserves
Net Income (US$mn) Depreciation and Amortization (US$mn)
additions
• Non-cash impairments offset by 531
non-cash gains 253
331
• Vietnam and Libya classified as 55
562
453
Held for Sale 47 278 276 273
73
26
2021 2022 2023 2021 2022 2023
14 AMMN Net Income Oil Price (US$/bbl)
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Deleveraging and rewarding our shareholders
• Natuna (2016), Ophir (2019) and Consolidated Debt (US$ bn), Production and Power Sales
3,993
Corridor (2022) acquisition debt 2,704 2,639 2,718
4,155
2,600
repaid within 24 months 163 160
85 103 100 94
• Completed 2023 US$429mn tender 2.8
3.2
2.6 2.7
3.0 3.2 3.3
2.9
2.4
offers & buybacks of USD Notes 2.2 2.3
2.1
• Delevered debt back to 2018 levels,
leverage ratios significantly 2018 2019 2020 2021 2022 2023
improved. Net Debt to EBITDA1 2.1x, Gross Debt Net Debt Power Sales, GWh Production, mboepd
without Oman2 1.7x Restricted Group (RG) Debt (US$ bn) and Net Debt to EBITDA
4.2
• 2023 paid US$65mn dividends, IDR39 3.3 3.4
2.7 2.1
per share, 2022 paid US$60mn 1.4
2.8
2.7
dividends, IDR36 per share 2.2
2.5
2.0
2.3
2.0
2.6
2.1
2.5
1.7 1.8
• Average shareholder return
from 2018, 19.9%3
2018 2019 2020 2021 2022 2023
Gross Debt Net Debt Net Debt to EBITDA
15
1) Restricted Group. 2018, 3.6x and 2023, 2.4x at mid-cycle price US$65/bbl 3) CAGR 2018 – 28 March 2024
2) US$500mn at year end
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Anthony R. Mathias
Chief Financial Officer
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ESG regional leadership
• Our core business is to supply affordable and
sustainable energy and natural resources
• Continue to pursue value-focus energy transition
by decarbonizing operations, expanding gas
portfolio as transition fuel, and increasing
renewables portfolio
• Medco has demonstrated 1st quartile ESG
performance and reporting
• Sustainalytics risk score improved to 29.6
• MSCI maintained A
• CDP maintained B
• Access to capital supported by ESG positive
trajectory
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Continuous ESG improvement
We support
Average Performance
Oil & Gas
Global
Your CDP Score Extraction & Asia
Average
Production
As of 2023, PT Medco Energi Internasional 2022 B C C C
Tbk received an MSCI ESG Rating of A.
MSCI DISCLAIMER STATEMENT REFER TO CONTENT SLIDE
2023 B B C C A
A-
Two categories at A level B
(Scope 1 & 2 Emissions and B-
Governance) C
49.9 C-
Severe Risk D
46.9 D-
Severe Risk
42.2
Severe Risk
Leadership (A/A-) : Implementing current best practices
Severe Risk Management (B/B-) : Taking coordinated action on climate issues
Ranking Awareness (C/C-) : Knowledge of impacts on, and of, climate issues
36.7 23 out of 307 Disclosure (D/D-) : Transparent about climate issues
40
High Risk Oil & Gas Producers 1 Nov 2023
High Risk
29.6 Risk Categories
NEGL LOW MED HIGH SEVERE MEDC admitted to IDX LQ45
Medium Risk
LOW CARBON LEADERS
0-10 10-20 20-30 30-40 40+
30
18 since Nov 2022
2019 2020 2021 2022 2023
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Roberto Lorato
Chief Executive Officer
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US$ US$
145 mboepd 4,100 GWh 430 mn <10/boe <2.5 x
Gas IPP: 3,400 GWh Oil & Gas: US$350mn Mid-cycle price at
Renewable IPP: 700 GWh Power: US$80mn
321 US$65/bbl
New reserves from Natuna, Corridor, Senoro, Complete Natuna projects; progress Corridor,
Tanzania and Oman Block 60 Senoro and Tanzania developments
Selective portfolio management; close Investment decision on West Bali PV;
Vietnam & Libya divestments progress Bulan PV and Ijen Geothermal
Continued 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$40bn market capitalization
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Amri Siahaan Roberto Lorato Anthony R. Mathias
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Chief Adminstrative Officer Chief Executive Officer Chief Financial Officer
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Tanzania Yemen
Thailand Laos
Vietnam
Bualuang
Cambodia
Chim Sao
West Bangkanai Simenggaris
South Natuna
Block A Sea Block B North
Sokang Tarakan
Beluga
Geothermal
Sarulla Donggi Senoro LNG Mexico Libya Oman
Bangkanai
Singapore
Riau IPP
Corridor &
TGI Pipeline Batam IPP Kalimantan
Sulawesi
South Sumatra Region
(SSB, Rimau, Lematang)
Papua Papua
Sumatra IPP Madura Offshore Senoro-Toili New
Sampang
Batu Hijau Guinea
Java Elang
Mini Hydro Geothermal
Ijen Bali PV Sumbawa PV
Production Mining Production
Power Installed
Development Mining Development
Exploration Power Development
Mining Exploration
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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
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