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View all search resultsMedco Energi’s revenue up 62% in Q1
Indonesia’s second-largest oil and gas company has seen its revenue rise 62 percent on the year as its production increased simultaneously with surging oil prices.
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T Medco Energi Internasional, the country’s second-largest oil and gas company, has seen its revenue rise 62 percent as its production increased simultaneously with surging oil prices.
The publicly listed company said in a statement on Wednesday that it booked revenue of US$489.34 million in the first quarter, which comfortably outpaced a 36 percent year-on-year (yoy) rise in the cost of revenue to $247.34 million in the same period.
“We got off to a very good start in 2022 and, thanks to our strong operational and financial performance, [Medco Energi] can provide new dividend guidelines to appreciate the continued support of our shareholders,” said Medco Energi CEO Roberto Lorato in the same statement.
The West Texas Intermediate (WTI) benchmark crude price averaged US$94.5 in the first quarter, up 63.5 percent from a year earlier, according to data from the United States Energy Information Administration (EIA).
Russia's invasion of Ukraine and Western sanctions imposed in response have fanned fears over a drop in supplies of oil in the global market, driving prices to more than seven-year highs.
Read also: Medco books US$5.1m net profit in Q1 as oil prices rise
Medco Energi booked US$90.04 million in net profit in the January-March period, continuing a positive trend from the same period last year, when the company reversed a net loss from the same period in 2020 as oil prices picked up following a reopening of the global economy.
Medco Energi's performance growth was supported by its oil and gas production rising 26 percent yoy to 127,000 barrels of oil equivalent per day (boepd) after the acquisition of the Corridor Block in South Sumatra in March.
Read also: MedcoEnergi to acquire ConocoPhillips' Indonesian assets
The rally in oil is set to continue, a Reuters poll from March 31 suggests, with Brent crude forecast to average $103.07 a barrel this year, according to 40 economists and analysts surveyed.
The share price of Medco Energi, traded on the Indonesia Stock Exchange (IDX) under the ticker symbol MEDC, was up 39 percent year-to-date (ytd) at Rp 645 apiece at Friday midday.
