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Medco books US$5.1m net profit in Q1 as oil prices rise
PT Medco Energi Internasional, the country’s second-largest oil and gas company, booked US$5.11 million in the January to March period, reversing the quarterly net loss the company booked in the same period last year.
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A woman walks past the Medco Energi Internasional office in Jakarta. (Kontan/Cheppy A. Muchlis)
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T Medco Energi Internasional, the country’s second-largest oil and gas company, booked US$5.11 million in net profit in the January-March period, reversing a net loss from the same period last year, as oil prices picked up following a reopening of the global economy.
The publicly listed company saw its net profit return to positive territory as revenue grew 8.6 percent year-on-year (yoy) to $300.24 million in the first quarter amid rising oil prices, which marginally outpaced an 8.1 percent yoy rise in costs to $180.36 million in the same period.
International crude oil price benchmark Brent fell to as low as $20.37 a barrel on April 20 last year but picked up to $75.39 a barrel on Monday, according to Business Insider data.
“The resumption of some economic activities and the improvement of oil prices to hover around $70 per barrel improved [Medco’s] performance in the first quarter of the year,” said MNC Sekuritas analyst Rudi Suthong to The Jakarta Post in a text message on Monday.
Read also: Energy heavyweight Medco books $95m loss in first half
Medco wrote in a statement on Saturday that its oil and gas production remained flat at 101 million barrels of oil equivalent per day (mboepd) in the January to March period. This is slightly above the company’s plan for this year at 95 mboepd.
However, the oil and gas heavyweight also noted that its growth remained limited by flat gas prices and “subdued” demand in Aceh and East Java.
