Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — FY2020 Earnings Presentation
22 slides from Pt Medco Energi Internasional Tbk's earnings presentation, Jun 4, 2021
Slide 1: 2020 Company Results & Q1-2021
2020 COMPANY RESULTS & Q1-2021 PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) Jakarta, 04 June 2021
Slide 2: Contents
CONTENTS Performance Summary COVID-19 Response 3 2020 Executive Summary 4 Q1- 2021 Update 5 2020 Operational Summary 6 Financial Highlights 7 Maintain ESG Progress 9 Business Guidance 2021 Guidance 10 What to Expect in 2021 12 Appendix Targeted Portfolio Management 13 Asset Portfolio 14 Business Sta
Slide 3: COVID-19 MedcoEnergi Response
COVID-19 MEDCOENERGI RESPONSE Prioritizing Health and Safety of Workforce and Communities WORK FORCE SAFETY COMMUNITY SUPPORT • No operational disruption from COVID-19, US$7mn • Donations to hospitals, community health centers and spending in 2020 to maintain business continuity clinics with COVID-1
Slide 4: 2020 Executive Summary
2020 EXECUTIVE SUMMARY Oil & Gas: Production 100mboepd; Power Sales: 2,639GWh, 31% Renewables Oil & Gas prices down 36% and 23% Y-o-Y; Gas demand below TOPQ Consolidated EBITDA US$502mn, down 20% Y-o-Y; EBITDA margin 46% Q4-2020 Impairment and write-downs US$93mn Successful exploration in Natuna and
Slide 5: Q1-2021 Update
Q1-2021 Oil & Gas Production: 101mboepd; Power Sales: 666GWh, 32% Renewables Oil price recovering. Hedged 12% of 2021 Production Forecast gas demand remains weak in key markets Cash and Cash Equivalents US$691mn; Debt US$2.7bn Ratings Affirmed: B+ Fitch, B+ S&P revised to Stable Completed Medco Powe
Slide 6: 2020 Operational Summary
2020 OPERATIONAL SUMMARY • Oil and gas production 100 mboepd, higher oil production but gas demand is below pre-pandemic levels • Meliwis gas development in Madura Offshore Gas PSC, East Java delivered first gas in July • The Natuna PSC received improved economic terms from the Indonesian Government
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated EBITDA (US$mn) • COVID-19 related low prices and low energy 68 demand reduced 2020 EBITDA by ~US$225mn 52 63 49 42 40 • 2020 EBITDA margin 46%, US$94mn discretionary expenditure reductions, without compromising core values 585 627 502 433 225 265 • Q4-2020 Net Incom
Slide 8: Deleveraging
DELEVERAGING • Supportive shareholders and proactive Liability Consolidated Debt and Production (US$ bn) Management 87 85 103 100 101 66 63 59 52 • Issued Q1-2020 US$650mn Note to retire 2022 Note 68 40 and IDR bonds 42 3.2 2.6 2.8 2.6 2.7 2.7 2.2 2.3 1.9 1.8 1.9 2.0 • Debt US$2.7bn, down 15%. Restr
Slide 9: Maintain ESG Progress
MAINTAIN ESG PROGRESS • Joined CDP and will report TCFD factors for 2020+ E&P and MPI: Total Recordable Injury Rate (TRIR) 2017 - 2020 • TRIR improved for four consecutive years, ahead 1.26 of industry trend 0.99 1.08 • Higher Hydrocarbon and Power sales but digitization & 0.7 0.59 0.58 fugitive emi
Slide 10: 2020 & 2021 Guidance: Production
2020 & 2021 GUIDANCE: PRODUCTION 2020 Actual 2019-2020 (mboepd) 2021 Guidance (mboepd) 115 • Production 100 mboepd within revised 110 guidance 103 100 101 95 100% • Gas demand below TOPQ, below normal pre-COVID-19 levels 26% 70 2021 Guidance 70 64 60 63 57 • Q1-2021 Production 101 mboepd 36% • Revis
Slide 11: 2020 & 2021 Guidance: Expenditure
2020 & 2021 GUIDANCE: EXPENDITURE FY 2020 Cash Cost/Unit 2, US$/boe • Oil & Gas Capex US$144mn, Power1 US$63mn, 103 100 below revised guidance 87 85 95 66 • Initial Capex guidance US$340mn, reduced to 56 56 mitigate COVID-19 and low energy demand 15.4 12.3 • London, Bangkok IHQ, Jakarta Ophir office
Slide 12: What to Expect in 2021
WHAT TO EXPECT IN 2021 Covid-19: Maintain and adapt Strict Protocols Disciplined capital investment and portfolio management Prudent liquidity and liability management Operating and focus Maintain cost procurement with Oil synergies, cashcosts and Gas cash costs< <US$10/boe US$10/boe Complete Place
Slide 13: Targeted Portfolio Management
TARGETED PORTFOLIO MANAGEMENT Closed and Integrated Value Adding Acquisitions Acquisitions have added value through enhanced scale, control and organizational competence. Acquisition targets are screened to ensure: • Improved MedcoEnergi credit status and profitability • Risks are manageable (knowle
Slide 14: Asset Portfolio
ASSET PORTFOLIO Sinphuhorm Tanzania Yemen Thailand Laos Bualuang Vietnam Cambodia Chim Sao and Dua Malaysia Bengara PM322 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
Slide 15: Oil and Gas Statistics
OIL AND GAS STATISTICS YoY Metrics 2019 2020 ∆% Net 2P Reserves, MMBOE Net Contingent Resources, MMBOE Production2 1,125 Oil, MBOPD 39.3 40.4 2.8 943 Gas, MMSCFD 341.9 322.3 (5.7) 301 310 Lifting/Sales Oil Lifting2, MBOPD 38.7 39.3 1.5 Gas Sales, BBTUPD 323.7 302.2 (6.7) 156 164 1,016 Oman Service C
Slide 16: Medco Power Statistics
MEDCO POWER STATISTICS YoY Metricsº 2019 2020 ∆% Gross Installed Capacity, MW IPP Sold and O&M Capacity IPP O&M IPP Sold, GWh 2,600 2,639 1.5 2,788 2,788 2,904 Renewables, GWh 802 817 2.0 638 638 Non Renewables, GWh 1,798 1,822 1.3 939 O&M Capacity, MW 2,150 2,150 0.0 Average Realized Price* 2,150 2
Slide 17: Amman Mineral Statistics
AMMAN MINERAL Amman STATISTICS Mineral Nusa Tenggara YoY Metrics 2019 2020 ∆% Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (koz) Production Copper, Mlbs 130.3 293.9 125.5 Batu Hijau Elang 15,140 Batu Hijau Elang Gold, koz 55.5 132.1 138.0 16,650 Sales Copper, Mlbs 125.9 2
Slide 18: Financial Statistics (2019 vs 2020)
FINANCIAL STATISTICS (2019 vs 2020) Average Revenue Gross Profit EBITDA Realized Price Oil Incl. Incl. Incl. Price US$40.3 36% MPI US$1,093 21% MPI US$322 41% MPI US$502 20% /bbl million million million Excl. Excl. Excl. Gas US$5.2 US$957 US$265 US$463 Price /MMBTU 23% MPI million 18% MPI million 46
Slide 19: 2020 Financial Summary
2020 FINANCIAL SUMMARY • Full year EBITDA US$502mn, down 20% Y-o-Y, due to liquids price and reduced gas demand caused by the pandemic • Net Income loss US$189mn, one-time impairments and write downs US$93mn • AMNT Phase-7 production benefited from higher copper and gold prices, Net Income US$25mn A
Slide 20: Multi Year Program for Carbon Offset
MULTI YEAR PROGRAM FOR CARBON OFFSET Biodiversity programs Rimau, South Bukit Jambul, Tarakan, Matak, Sumbawa, Batam, Sumatra Lematang, North Kalimantan Riau Islands West Nusa Riau South Sumatra Tenggara Preservation of targeted Planted 32,167 Preservation of the Conducted Planted of a million Tree
Slide 21: Best in Class Corporate Governance
BEST IN CLASS CORPORATE GOVERNANCE Certification and Business Ethics Compliance • ISO37001:2016 ABMS Certification • Anti-Corruption & Business Ethics PHASE 5 Compliance Program Medco Bualuang • Statement of Adherence 5 • Conflict of Interest Declaration • Ethics Liaison Officer Program PHASE 3 PHAS
Slide 22: 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 Website : www.medcoenergi.com
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