PT Medco Energi Internasional (MEDC) Q4 2023 earnings summary

Executive summary

• Met 2023 operational guidance; oil and gas production was 160 mboepd, power sales reached 4,155 GWh, and oil and gas cash cost was $8.3/boe.

• Focused on long-term value through gas portfolio growth, clean power and renewables expansion, reserve additions, and copper and gold interests.

Financial highlights

• FY23 revenue was $2.249bn, gross profit $1.034bn, EBITDA $1.255bn, and net income $331m.

• EBITDA and net income were below 2022, reflecting lower commodity prices; AMMN net income was affected by severe rainfall and export permit delays.

• Realized prices were $78/bbl for oil and $7.0/MMBTU for gas.

Outlook and guidance

• 2024 guidance: oil and gas production 145 mboepd, power sales 4,100 GWh, capex $430m, cash cost below $10/boe, and Restricted Group net debt/EBITDA below 2.5x at $65/bbl mid-cycle pricing.

• 2024 capex is $350m for oil and gas, focused on Natuna, Corridor and Oman Block 60 drilling, and $80m for power, focused on Ijen Geothermal and Bali PV.

• Planned priorities include completing Natuna projects, advancing Corridor, Senoro and Tanzania developments, and progressing Bulan PV and Ijen Geothermal.

• Guidance includes new reserves from Natuna, Corridor, Senoro, Tanzania and Oman Block 60; selective portfolio management and continued dividends and debt repayments.