PT Medco Energi Internasional (MEDC) Q2 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance in 1H 2026, with robust production growth and disciplined cost management driving significant profit and balance sheet improvements.

• Oil & Gas production reached 170.1 mboepd in 1H26, up 19% year-on-year, with gas making up 72% of total output.

• Diversified portfolio across oil & gas, power, and mining, with continued expansion in renewables and copper/gold assets.

• Maintained top-tier MSCI AAA ESG rating, with substantial reductions in GHG and methane emissions since 2019.

• Key projects like Senoro Phase 2A and Bualuang Renewal Plan Phase I came onstream, supporting growth.

Financial highlights

• Revenue rose 24.3% year-over-year to USD 1,414.7 million, driven by higher oil & gas and power sales.

• EBITDA increased 29.3% year-over-year to USD 805.1 million, with margin expansion to 56.9%.

• Net income surged 640.3% year-over-year to USD 275.3 million, supported by strong operations and AMMAN contribution.

• Cash and equivalents reached USD 1.4 billion, up 58.9% year-over-year.

• Power segment delivered 2,323 GWh sales in 1H26, up 16.5% year-on-year, with renewables at 26% of installed capacity.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: oil & gas production 165–170 mboepd, power sales 4,550 GWh, cash cost below USD 10/boe, and ROE above 15%.

• Capex repositioned to accelerate Sakakemang and DEB expansions, with oil & gas capital expenditure guidance for 2026 at $415 million.

• Sakakemang development targets first gas in Q3 2027.

• Further catalysts include Bualuang Phase 1 onstream, AMMN smelter ramp-up, and Batam IPP expansion.