The Jakarta Post
Publicly listed energy firm PT Medco Energi Internasional saw its net profits fall by 31.2 percent to US$127.09 million in 2017 following an increase in its costs of sales, partly driven by the recent hike in global crude oil prices.
“On the bottom line, the company booked a net profit of $127.1 million, compared to $184.8 million in 2016,” Medco said in a statement on Wednesday.
Medco produced an average of 35,100 barrels of oil per day (bopd) and 278 million standard cubic feet per day (mmscfd) of gas last year, seeing an annual increase of 56 percent and 35 percent, respectively.
Furthermore, the average selling price of Medco’s oil climbed by 21.9 percent to $51.5 per barrel, while its gas price soared by 25.7 percent to $5.5 per million British thermal unit (mmbtu). Subsequently, the company’s revenue jumped by 56.9 percent to $925.6 million.
However, Medco’s costs of sales and other direct costs also significantly increased by 48.2 percent to $504.9 million, mostly because the cost of its crude oil purchases grew sixfold to $80.87 million. The company also saw its tax liabilities jump by 120.95 percent to $139.8 million. As a result, its net profits were dragged down.
Meanwhile, in 2017, Medco’s mining affiliate PT Amman Mineral Nusa Tenggara completed its smelter-feasibility studies and began the seventh development phase of its Batu Hijau mine in Sumbawa, West Nusa Tenggara, from its own cash reserves. (bbn)