Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — H1 2022 Earnings Presentation
26 slides from Pt Medco Energi Internasional Tbk's earnings presentation, August 2022
Slide 1: PT Medco Energi Internasional Tbk, Jakarta, August 2022
PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) Jakarta, August 2022
Slide 2: Performance Summary
Performance Summary Key Messages 3 1H-22 Results 4 1H-22 ESG Highlights 5 Corridor Block 6 Core Business 7 Financial Performance 8 Capital Structure 9 Guidance 2022 Production and Expenditure 10 – 11 What To Expect in 2022 12 Appendix Business Strategy 14 Road to Net Zero 15 – 16 MedcoEnergi Portfol
Slide 3: Strong Operational and Financial Performance
Strong Operational and Financial Performance Improved Production Guidance Continued Deleveraging Corridor - Central Grissik Plant 2021 Final and 2022 Interim Dividend Corridor Integration on Track Natuna Hiu First Gas Sumbawa PV in Service Natuna - Belanak Sumbawa PV 26 MWp 3
Slide 4: 1H-22 Results
FINANCIAL & OPERATIONAL PERFORMANCE SUSTAINABILITY • EBITDA US$806mn, Net Income US$270mn • Energy Transition 2025 and 2030 interim targets • Strong operational results: • 2021 Sustainability Report, CDP and first TCFD Report • Oil & gas production 153 mboepd • 2022 – 2027 Materiality Assessment res
Slide 5: 1H-22 ESG Highlights
• 2021 Sustainability Report, CDP and first TCFD Report • ~90% of the 5-year ESG targets set in the 2018 Materiality Assessment Environmental • Published Climate Change Strategy interim Targets for 2025 & 2030 • Planted 41,650 trees, 50 Ha in South Sumatera • Natuna community collaboration programs
Slide 6: 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$39mn
Slide 7: Core Business
Build long-term value with a portfolio of sustainable energy and natural resource businesses CLIMATE CHANGE STRATEGY US$ BOND RESTRICTED GROUP Oil & Gas Clean Power Copper & Gold Mining 1H-22 Production 153 1H-22 939 1,925 1H-22 209 351 mboepd MW IPP MW O&M Mlbs Copper Koz Gold 78/22 46/54 50 MWp 30
Slide 8: Financial Performance: EBITDA and Net Income
Consolidated EBITDA (US$mn) • Record 1H-22 EBITDA and 104 Net Income following 68 63 68 increased volumes and 52 40 943 commodity prices 714 806 433 523 620 495 • Net Income US$270mn, post 2017 2018 2019 2020 2021 1H-221 exploration write-off Pro forma Oil price US$12mn Consolidated Net Income (US$m
Slide 9: Capital Structure
Consolidated Debt, Price, and Production (US$ bn) • Corridor acquisition funded through 87 85 103 100 94 153 US$400mn 2028 Notes (Q4-21) and 104 52 68 63 68 US$450mn 2-year amortizing loan 40 3.2 3.2 (Q1-22). On track to fully repay by 2.6 2.8 2.2 2.6 2.7 2.3 3.0 2.1 2.7 1.9 end 2024 2.5 2.3 2.6 2.8
Slide 10: 2022 Production Guidance
1H-22 Actual (mboepd) Guidance 155 • Oil & gas production: 1H-22 153 mboepd, 181 153 24% 21% mboepd pro forma1 94 • Hedged 2H-22 9.5% production at 120 54% 121 57% US$52.5/bbl, and 4.7% 2023 at US$50/bbl 60 34 34 22% 34 22% 2021 1H-22 Indexed & 2022 Revised Indexed & 2022 Guidance Fixed Gas Guidance
Slide 11: 2022 Cash Cost and Capex Guidance
1H-22 Cash Cost/Unit3, US$/boe • Oil & gas capex US$102mn, power 104 US$15mn. Capex spending for 68 63 68 developments in Natuna and Riau IPP 40 • Oil & gas cash costs2 US$6.5/boe 9.9 <10 • ~40¢/boe deferred due to oil lift schedule 8.4 9.1 9.8 6.5 2018 2019 2020 2021 1H-22 2022 Guidance 2022 Guidan
Slide 12: What To Expect in 2022
New GSAs on Corridor, Natuna and Senoro Fully integrated Corridor Medco Organisation Dividend payments and lower RG leverage funded from excess cash Continue selective portfolio management Place into service Natuna projects; Progress Senoro phase 2 FID Ijen Geothermal and Bali PV by Q4-22; Progress
Slide 13: Appendix
= APPENDIX
Slide 14: Building a Leading Southeast Asian Energy and Natural Resources Company
Building a Leading Southeast Asian Energy and Natural Resources Company CLIMATE CHANGE STRATEGY US$ BOND RESTRICTED GROUP Oil & Gas Clean Power Copper & Gold Mining • Extend reserve life and add value • Grow Clean and Renewable Portfolio • Retain exposure to world class copper through low risk explo
Slide 15: Road to Net Zero: Emissions Targets
E&P Scope 1&2 GHG Emissions1, million tCO2e 20% 30% • Commit to Upstream CCS pilot project by 2025 5.3 • Adopt renewable energy sources, hydrogen 4.6 4.4 and expand Natural Carbon Capture • Collaborate along Supply and Value Chains to GHG Emissions 2019 2020 2021 2025 2030 improve efficiency Reducti
Slide 16: Road to Net Zero: Commitments and Targets
20 25 20% INTERIM TARGET Scope 1&2 emission2 Renewable mix3 26% 20 30 30% INTERIM TARGET Scope 1&2 emission2 Renewable mix3 30% 20 50 NET ZERO Scope 1&2 emissions 60 Issue first scope 3 emissions target Methane Emissions2 Methane Emissions2 20 NET ZERO Including scope 3 25% 37% emissions 22 21 20 DE
Slide 17: MedcoEnergi Portfolio and Key Assets
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 Corridor & Batam
Slide 18: 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 19: Senoro Integrated phased gas development
Integrated phased gas development • Joint Operated onshore license, first production Q3 2015 • 20 Year PSC Extension effective from December 2027, monetizing ~1.7 TCF gross reserves • Progressing Senoro Phase 2 Development Structure Upstream WI Senoro Downstream MedcoEnergi 30% 11.1% Pertamina 50% 2
Slide 20: 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 21: Projects placed into service in 1H-22
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 22: Oil and Gas Business and Financial Statistics
1H 1H YoY FY FY YoY Net 2P Reserves, MMBOE Metrics 2022 2021 ∆% 2021 2020 ∆% Production1 1H-22 Oil, MBOPD 33.5 35.8 (6.6) 34.4 40.4 (14.9) 2P RLI : 8.4x 5-yr 2P RRR :1.8x 125 490 Gas, MMSCFD 651.7 312.4 108.6 319.7 322.3 (0.8) 5-yr F&D3 : US$7.6/boe 107 389 24 1 Lifting/Sales 311 Oil Lifting, MBOPD
Slide 23: Power Business Statistics
1H 1H 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 1,962 1,355 44.8 2,718 2,639 3.0 638 638 2,288 939 939 Renewables, GWh 424 443 (4.3) 871 817 6.6 638 Non Renewables, GWh 1,538 912 68.
Slide 24: Amman Mineral Nusa Tenggara
Amman Mineral Nusa Tenggara Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (Koz) 1H 1H YoY FY FY YoY 31/12/2021 31/12/2021 Metrics 2022 2021 ∆% 2021 2020 ∆% Production 14,797 16,093 Copper, Mlbs 208.7 103.1 102.5 233.7 293.9 (20.5) Gold, Kozs 350.5 55.0 537.5 156.4 132.1 18
Slide 25: Financial Statistics
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$104.4 Incl. US$1,147 Incl. US$603 Incl. US$806 Price /bbl 68% MPI million 80% MPI million 158% MPI million 154% Gas US$7.7 31% Excl. US$1,090 Excl. US$569 Excl. US$784 Price /MMBTU MPI million 91% MPI million 178% MPI million 162% Blended US$
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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