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Medco Energi revenue up 85% on higher output, prices
Indonesia’s second-largest oil and gas company booked US$2.31 billion in revenue in 2022, up 84.66 percent from the previous year, on the back of high commodity price growth, increasing oil and gas production as well as its mining business.
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The Oyong oil and gas rig to exploit the Sampang Block is located in the Madura Strait, off the coast of East Java. Medco took over the block from Ophir Energy in 2019 by acquiring Ophir. (SKK Migas/SKK Migas)
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nergy heavyweight PT Medco Energi Internasional, Indonesia’s second-largest oil and gas company, booked US$2.31 billion in revenue in 2022, up 84.66 percent from the previous year, on the back of high commodity price growth, increasing oil and gas production as well as its mining business.
The publicly listed company saw its profit grow around tenfold year-on-year (yoy) to $530.88 million, while the cost of revenue rose 52 percent yoy to $1 billion.
The rise in costs was caused mainly by higher depreciation, depletion and amortization costs, higher production and lifting costs as well as higher costs of crude oil purchases.
“Medco Energi's financial performance shows strong core operational results, with increased production following the acquisition of the Corridor Block and the operation of new projects in the oil and gas as well as power segments, pushed by the high commodity prices,” Medco Energi CEO Roberto Lorato said in a press release on Saturday.
The company produced 163 million barrels of oil equivalent per day (boepd), marking annual growth of 73 percent, at a cost of $6.9 per barrel of oil equivalent. Fifty-five percent of total production was subject to a fixed price of $6.9 per metric million British thermal units (mmbtu) in 2022, while the remaining 45 percent was linked to commodity spot prices.
International crude oil price benchmark Brent averaged $100 per barrel in 2022, and the United States benchmark West Texas Intermediate (WTI) spot averaged $95 per barrel.
The US Energy Information Administration (EIA) lowered its Brent and WTI oil price forecasts for 2023 in its latest short-term energy outlook (STEO). The March STEO sees the Brent spot price averaging $82.95 per barrel and the WTI spot price averaging $77.10 per barrel this year.
