Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — H1 2023 Earnings Presentation
28 slides from Pt Medco Energi Internasional Tbk's earnings presentation, October 2023
Slide 1: PT Medco Energi Internasional Tbk, Jakarta, October 2023
PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) Jakarta, October 2023
Slide 2: Key Messages and agenda
Key Messages 3 Performance Update 4 Operational and Financial Performance 2018 – 2023 5 What to Expect Next 6 Business Strategy 7 Production & Power Sales 8 Capex & Opex 9 Financial Performance 10 Capital Structure 11 ESG Performance 13 – 14 Portfolio and Key Assets 15 – 22 Business and Financial St
Slide 3: Solid Operational Performance
Solid Operational Performance Improving Oil Prices Successful AMMN IPO Corridor - Central Grissik Plant Deleveraging and Dividends Project Delivery Portfolio Management Energy Transition Ijen Geothermal Sumbawa PV 3
Slide 4: Performance Update
FINANCIAL & OPERATIONAL PERFORMANCE ENERGY TRANSITION AND SUSTAINABILITY • Meet or exceed all 2023 operational guidance • On track to deliver 2025 and 2030 Climate Change targets • Full year 2023 EBITDA and Net Income consensus • EMA conditional import permit 600MW Bulan PV • AMMN Q2 2023 Net Income
Slide 5: Operational and Financial Performance 2018 – 2023
HYDROCARBON PRODUCTION (MBOEPD) POWER CAPACITY (MW) 2P RESERVES (MMBOE) Liquids Fixed Priced Gas Oil Price (US$/bbl) Gas IPP Renewables Oil Gas Gas Indexed Priced Gas 939 919 2023F 2P RLI: 14.1 year 68 68 96 75 Include Tanzania in 2023 63 40 645 638 638 638 600 163 160 565 545 21% 297 290 290 290 85
Slide 6: What to Expect Next
New GSAs on Corridor and Senoro Additional reserves from Corridor, Natuna, Senoro and Tanzania Dividend payments and debt repayments Selective portfolio management; close the Middle East acquisition Complete ongoing Natuna projects; progress Corridor, Senoro and Tanzania developments Investment deci
Slide 7: Building a Leading Southeast Asian Energy and Natural Resources Company
Building a Leading Southeast Asian Energy and Natural Resources Company Oil & Gas • Aggregator of large, mature producing assets • Extend reserve life and add value through low risk exploration on producing licenses • Increase efficiency, abate emissions, grow gas portfolio as a Transition Fuel • Co
Slide 8: Production & Power Sales
1H 2023 Actual (mboepd) Guidance • Oil & Gas production 162 mboepd 163 162 160 21% 21% • Production 80% gas and 20% liquids; 42% total production exposed to current price 129 130 126 59% 58% environment, 58% production at fixed prices • Power 2,003 GWh sales following the Riau IPP 34 20% 34 21% 32 2
Slide 9: Capex & Opex
1H 2023 Cash Cost/Unit (US$/boe) • Oil & Gas capex US$99mn, Power1 US$28mn. 68 63 68 96 40 • 1H 2023 capex spending for developments in Natuna, Corridor and Ijen Geothermal IPP 9.9 9.1 9.5 <10 8.4 • Oil & gas cash costs2 US$7.4/boe 6.9 2018 2019 2020 2021 2022 2023 Guidance Cash Cost Realised Oil Pr
Slide 10: Financial Performance
Consolidated EBITDA (US$mn) • EBITDA US$634mn, Net Income 163 162 US$119mn, CFO US$179mn 85 103 100 94 96 68 63 68 75 • Oil & Gas production 162 40 1,593 mboepd up 6% Y-o-Y 787 620 667 523 495 • Oil & Gas prices down 28% and 222 277 190 349 806 634 301 343 305 318 15% respectively Y-o-Y 2018 2019 20
Slide 11: Capital Structure
Consolidated Debt and Production (US$ bn) • 2022 dividend: IDR39 per share • Continue to deleverage through early 163 162 buyback of USD/IDR Notes, early and scheduled amortizing repayments 103 100 85 94 • Natuna acquisition, November 2016 US$240mn debt repaid 18 months 2.8 3.2 2.6 2.7 2.4 3.0 3.2 2
Slide 12: Appendix
= APPENDIX
Slide 13: ESG Performance: ratings
We support Average Performance Oil & Gas Global Your CDP Score Extraction & Asia Average Production As of 2022, PT Medco Energi Internasional 2021 C C B- B- Tbk received an MSCI ESG Rating of A. MSCI DISCLAIMER STATEMENT REFER TO CLOSING SLIDE 2022 B C C C A A- B 2022 B- C 2021 49.9 D C- Severe Risk
Slide 14: ESG Performance: targets and emissions
49.9 46.9 42.2 36.7 INTERIM TARGET 62% 28% 5.4 60% 28% 64% 38% 79% 23% 26% 2025: Disclose and 30% million set targets for tCO2e 164 Scope 3 emissions thousand tCO2e 12% 72% 72% 62% 15% 77% 74% 70% 16% 19% 19% 18% 20% 38% 40% 36% 21% 25% 30% 37% 2019 BB 2020 BB 2021 BBB 2022 A 2025 2030 Gas Productio
Slide 15: Portfolio and Key Assets map
Tanzania Yemen Thailand Laos Bualuang Vietnam Cambodia Chim Sao and Dua Bangkanai Block A South Natuna Sea Block B North Tarakan Sokang Beluga Simenggaris Mexico Libya Oman Geothermal Sarulla South Sokang Donggi Senoro West Bangkanai LNG Singapore Riau IPP Corridor & Batam IPP TGI Pipeline Kalimanta
Slide 16: Closed and Integrated Value Adding Acquisitions
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: Completed Corridor integration
Completed Corridor integration Key Facts Integration and Adding Value • Sumatra based PSC with 7 producing gas fields, and • Immediately accretive with production volumes and sales 2 producing oil fields prices above acquisition case • Indirect ownership of gas pipelines to Duri and Singapore • Comp
Slide 18: 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 19: Integrated phased gas development (Senoro)
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 ~2.0 TCF 1 Mtpa 0.7 Mtpa (
Slide 20: Unlocking gas reserves of 12 TCF from Blocks 1 and 4
Unlocking gas reserves of 12 TCF from Blocks 1 and 4 • Acquired through Ophir plc take-over in 2019 • The JV partners in Block 1 and 4 are Medco (20%), Shell (operator, 60%), and Pavilion Energy (20%) • Block 1 & 4 and Block 2 (Equinor and ExxonMobil) have agreed to unitize the blocks and jointly de
Slide 21: Expanding supply of clean and environmentally friendly energy
Expanding supply of clean and environmentally friendly energy ~2 GWp IJEN GEOTHERMAL POWER PLANT 21
Slide 22: CO2 Storage potential CCS
Medco operates 10 producing PSCs in Indonesia with significant CO2 Storage potential CCS Opportunities CCS Progress • CCS technology can unlock development of Medco high • CCS is an element of Medco’s climate change strategy CO2 gas fields • CO2 storage volume has been estimated for all Medco assets
Slide 23: Build long-term value with a portfolio of sustainable energy and natural resource businesses
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 162 Installed Capacity 919 1,925 Production 134 172 mboepd MW IPP MW O&M Mlbs Copper Koz Gold 80/20 41/
Slide 24: Oil & Gas business and financial statistics
1H 1H YoY FY FY YoY Net 2P Reserves, MMBOE Metrics 2023 2022 ∆% 2022 2021 ∆% 1H-23 Production1 2P RLI: 8.9x Oil, MBOPD 32.1 33.5 (4.3) 33.5 34.4 (2.6) 5-yr 2P RRR : 1.7x 5-yr 2P FD&A : US$6.3/boe Gas, MMSCFD 709.2 651.9 8.8 704.1 319.7 120.3 125 20 481 25 4 6 457 Lifting/Sales 389 52 Oil Lifting, MB
Slide 25: Power business statistics
1H 1H YoY FY FY YoY Gross Operating Installed Capacity, MW Metrics 2023 2022 ∆% 2022 2021 ∆% IPP O&M IPP Sold and O&M Capacity1 2,788 2,788 2,864 2,844 IPP Sold, GWh 2,003 1,857 7.9 3,993 2,718 46.9 638 638 2,288 939 919 Renewables, GWh 419 424 (1.2) 855 871 (1.8) 638 Gas IPP, GWh 1,584 1,433 10.6 3
Slide 26: Amman Mineral Nusa Tenggara
Amman Mineral Nusa Tenggara Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (Koz) 1H 1H YoY FY FY YoY 31/12/2022 Metrics 31/12/2022 2023 2022 ∆% 2022 2021 ∆% Production 14,000 15,575 Copper, Mlbs 133.7 208.7 (35.9) 463.9 233.7 98.5 Gold, Kozs 171.5 350.5 (51.1) 730.7 156.5 3
Slide 27: Consolidated and Restricted Group financial statistics
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$75.2 US$1,116 US$470 US$634 28% Consolidated 1% Consolidated 24% Consolidated 19% Price /bbl million million million Gas US$7.2 Restricted US$949 Restricted US$432 Restricted US$608 Price /MMBTU 15% Group million 9% Group million 22% Group mi
Slide 28: 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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