Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — Non-Deal Roadshow (February 2023)
26 slides from Pt Medco Energi Internasional Tbk's roadshow presentation, February 2023
Slide 1: PT Medco Energi Internasional Tbk
PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) February 2023
Slide 2: Performance Summary agenda and disclaimer
Performance Summary Key Messages 3 Nine Month Results 4 Core Business 5 Business Strategy 6 Consistent Focus on ESG Improvement 7 Financial Performance 8 Capital Structure 9 Guidance Production and Expenditure 10 – 11 What to Expect 12 Appendix MedcoEnergi Portfolio 14 MedcoEnergi At Glance 15 Targe
Slide 3: Key Messages: Strong Operational and Financial Performance
Strong Operational and Financial Performance Higher Full Year Production and Power Sales Guidance Corridor GSPL GSA signed Corridor – Suban Plant Continued Deleveraging Successful Corridor Integration Continued ESG Improvement Reaffirm Dividend Guidance Madura Offshore - Meliwis Sumbawa PV 26 MWp 3
Slide 4: Nine Month Results
FINANCIAL & OPERATIONAL PERFORMANCE SUSTAINABILITY • Operations • Continued ESG improvement: • Oil & Gas production 161 mboepd • Sustainalytics from 42.2 to 36.7 • Power generation sales 2,930 GWh • MSCI from BBB to A • AMNT Copper production 331 Mlbs & Gold 554 Koz • CDP score improved from C to B
Slide 5: Core Business
Build long-term value with a portfolio of sustainable energy and natural resource businesses CLIMATE CHANGE STRATEGY US$ BOND RESTRICTED GROUP Oil & Gas Clean Power Copper & Gold Mining Production 161 Installed Capacity 939 1,925 Production 331 554 mboepd MW IPP MW O&M Mlbs Copper Koz Gold 79/21 45/
Slide 6: Building a Leading Southeast Asian Energy and Natural Resources Company
Building a Leading Southeast Asian Energy and Natural Resources Company CLIMATE CHANGE STRATEGY US$ BOND RESTRICTED GROUP Oil & Gas Clean Power Copper & Gold Mining • Extend reserve life and add value • Grow Clean and Renewable Portfolio • Exposure to world class copper through low risk exploration
Slide 7: Consistent Focus on ESG Improvement
49.9 46.9 42.2 36.7 INTERIM TARGET 62% 28% 5.3 60% 28% 64% 38% 79% 23% 26% 30% million tCO2e 158 thousand tCO2e 13% 72% 72% 62% 17% 77% 74% 70% 14% 19% 17% 16% 20% 38% 40% 36% 21% 25% 30% 37% 2019 BB 2020 BB 2021 BBB 2022 A 2025 2030 Gas Production Renewable IPP Capacity3 Oil & Gas Scope 1&2 Emissio
Slide 8: Financial Performance
Consolidated EBITDA (US$mn) • Strong nine months 161 EBITDA and Net Income 103 100 94 101 87 85 with volumes and 52 63 68 commodity prices above 68 40 2021 1,232 523 620 714 495 • Nine months EBITDA 433 2017 2018 2019 2020 2021 9M-221 (US$1,232mn) and Net Production, mboepd Brent Price, US$/bbl Inco
Slide 9: Capital Structure
• Corridor acquisition US$850mn, funded Consolidated Debt, Price, and Production (US$ bn) with US$400mn 2028 Notes (Q4-21) and 127 161 US$450mn 2-year amortizing loan (Q1-22) 103 100 94 87 85 • US$273mn RG debt repaid since 52 63 68 100 101 acquisition. IDR Bonds issued in Q3-22 for 68 40 US$95mn 20
Slide 10: Production guidance: Oil & Gas 161 mboepd
9M-22 Actual (mboepd) Guidance • Oil & Gas 161 mboepd with continued strong 161 160 gas demand 24% 24% • Production 79% gas, 45% of total production 94 127 126 55% 55% exposed to current price environment, 55% 60 at fixed price 34 34 21% 34 21% • Power 2,930 GWh sales with additional 2021 9M-22 Inde
Slide 11: Expenditure: capex and cash cost guidance
9M-22 Cash Cost/Unit (US$/boe) • Oil & Gas capex US$150mn, Power1 US$24mn. 101 Capex spending for developments in Natuna and 68 63 68 Riau IPP 40 • Higher Q3 opex due to acid fracturing, workovers and Sumatra production bonus 9.9 <10 8.4 9.1 9.8 7.2 • Oil & gas cash costs2 US$7.2/boe with ~30¢/boe d
Slide 12: What to Expect
New GSAs on Corridor, Natuna and Senoro Fully integrated Corridor Medco Organisation Dividend payments and RG debt repayments funded from excess cash Continue selective portfolio management Place into service Natuna projects; Progress Senoro phase 2 Investment decision on Ijen Geothermal, Sumbawa LN
Slide 13: Appendix
= APPENDIX
Slide 14: MedcoEnergi Portfolio
Sinphuhorm Tanzania Yemen Thailand Laos Bualuang Vietnam Cambodia Chim Sao and Dua Bangkanai Block A South Natuna Sea Block B North Tarakan Sokang Simenggaris Mexico Libya Oman Geothermal Sarulla South Sokang Donggi Senoro West Bangkanai LNG Singapore Riau IPP Corridor & Batam IPP TGI Pipeline Kalim
Slide 15: MedcoEnergi At Glance
1 Southeast Asian independent natural resources company with large reserve base and production 2 Diversified portfolio of oil & gas, growing clean power and copper & gold mining businesses 3 Placed to benefit from rapid economic growth and expanding energy demand in Southeast Asia 4 Experienced low
Slide 16: Closed and Integrated Value Adding Acquisitions; Portfolio Rationalization
Acquisitions have added value through enhanced scale, control and organizational Closed and Integrated Value Adding Acquisitions competence. Acquisition targets are screened to ensure: • Improved MedcoEnergi credit status and profitability • Manageable risk (knowledge of asset, organization capabili
Slide 17: Corridor integration is on track
Corridor integration is on track • Sumatra based PSC with 7 producing gas fields, and 2 producing oil fields • Indirect ownership of gas pipelines to Duri and Singapore • PSC extended to December 2043 • Energy Council “Asia Pacific Deal of The Year” Integration and Adding Value • Identified ~US$50mn
Slide 18: Senoro integrated phased gas development
Integrated phased gas development 1 Mtpa 1 Mtpa JERA • Joint Operated onshore license, first PEP (Japan) production Q3 2015 (Donggi & Matindok) 250 + 20 0.3 Mtpa Kyushu Electric (Japan) • 20 Year PSC Extension effective from 105 85 DSLNG Korea Gas December 2027, monetizing ~1.7 TCF 1 Mtpa 0.7 Mtpa (
Slide 19: World-class offshore operational capabilities
World-class offshore operational capabilities • Operated offshore PSC in the South Natuna Sea, world class facilities, large hydrocarbon base, license expires October 2028 • Operated West Natuna Transportation System (WNTS), a 656 km 28’’ gas trunk line to Singapore • Commodity linked priced gas sal
Slide 20: Riau IPP and Sumbawa PV placed into service
Project place into service in 1H-22 Riau IPP 275 MW • Combined Cycle 275MW Gas Power Plant, commercial operation in February 2022 • Total project cost ~US$290 million, supported by a consortium of international banks and a 20 year PPA with PLN • The project recorded 8.6 million safe man hours and ov
Slide 21: Oil and Gas business and financial statistics
9M 9M YoY FY FY YoY Net 2P Reserves, MMBOE Metrics 2022 2021 ∆% 2021 2020 ∆% Production1 9M-22 Oil, MBOPD 33.8 35.0 (3.4) 34.4 40.4 (14.9) 2P RLI : 8.3x 5-yr 2P RRR :2.1x 125 5 480 Gas, MMSCFD 691.4 311.3 122.1 319.7 322.3 (0.8) 5-yr F&D3 : US$7.5/boe 107 389 38 1 Lifting/Sales 311 Oil Lifting, MBOP
Slide 22: Power business statistics
9M 9M YoY FY FY YoY Gross Operating Installed Capacity, MW Metrics 2022 2021 ∆% 2021 2020 ∆% IPP O&M IPP Sold and O&M Capacity1 2,788 2,788 2,864 2,864 IPP Sold, GWh 2,930 2,011 45.7 2,718 2,639 3.0 638 638 2,288 939 939 Renewables, GWh 637 646 (1.4) 871 817 6.6 638 Non Renewables, GWh 2,294 1,365 6
Slide 23: Amman Mineral Nusa Tenggara
Amman Mineral Nusa Tenggara Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (Koz) 9M 9M YoY FY FY YoY 31/12/2021 31/12/2021 Metrics 2022 2021 ∆% 2021 2020 ∆% Production 14,800 16,040 Copper, Mlbs 330.8 163.3 102.6 233.7 293.9 (20.5) Gold, Kozs 553.7 94.8 484.1 156.4 132.1 18
Slide 24: Financial statistics including and excluding Corridor
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$101.4 Incl. US$1,808 Incl. US$905 Incl. US$1,232 Price /bbl 58% MPI million 89% MPI million 141% MPI million 142% Gas US$7.9 25% Excl. US$1,721 Excl. US$856 Excl. US$1,204 Price /MMBTU MPI million 101% MPI million 159% MPI million 152% Blende
Slide 25: Corridor: ~US$50mn Potential Recurring Cost Synergy
US$mn Cost Optimization (in Million USD) Cost Optimization Items Value Projection Effective Date 11. IT Cost Allocation (IT Resources, Corporate US$19mn/ year Mar 2022 50 License, IT Service, etc.) 2 12 21 Suban Revamping CAPEX cost reduction from US$12mn 2026 5 9 15 8 16 MPEP Stage gate review 40 3
Slide 26: PT Medco Energi Internasional Tbk
PT Medco Energi Internasional Tbk The Energy Building 53rd Floor SCBD Lot 11A Jl. Jend. Sudirman, Jakarta 12190 Indonesia P. +62-21 2995 3000 F. +62-21 2995 3001 E. investor.relations@medcoenergi.com Website : www.medcoenergi.com
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