Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — H1 2024 Earnings Presentation
32 slides from Pt Medco Energi Internasional Tbk's earnings presentation, Aug 8, 2024
Slide 1: PT Medco Energi Internasional Tbk 1H 2024 Results
PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) | Jakarta, 8 August 2024
Slide 2: Presenters
Roberto Lorato Anthony R. Mathias Ronald Gunawan Amri Siahaan 2 Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Administrative Officer
Slide 3: Agenda and disclaimer
Highlights 4 Operational Performance 6 Financial Performance 10 ESG and Climate Change 13 Outlook 19 Appendix 23 The following presentation has been prepared by PT Medco Energi Internasional Tbk. (“Company” or “MedcoEnergi”) and contains certain projections, plans, business strategies, policies of t
Slide 4: Roberto Lorato, Chief Executive Officer
Roberto Lorato Chief Executive Officer 4
Slide 5: 1H 2024 Highlights
Production Power Sales On track to meet operational guidance mboepd GWh 1H 2024 : 153 1H 2024 : 2,003 Oman acquisition APAC “Deal of the Year” 2024 Guidance : 145 - 150 2024 Guidance : 4,100 Capex Cash Cost Vietnam and Libya divestment closed US$ mn US$/boe 1H 2024 : 188 1H 2024 : 7.0 2024 Guidance
Slide 6: Ronald Gunawan, Chief Operating Officer
Ronald Gunawan Chief Operating Officer 6
Slide 7: Production ahead of guidance
Ahead of guidance 1H 2024 Actual (mboepd) Guidance • Production 153 mboepd, above 163 160 153 145 -150 guidance but lower compared to 1H 94 50% 129 128 111 103 2023 due to Corridor working 60 19% interest reduction, lower Singapore 34 34 42 47 31% 32 piped gas demand, and Vietnam 2021 2022 2023 1H 2
Slide 8: Cash cost and capex on track to meet guidance
On track to meet guidance Oil & Gas Cash Cost/Unit (US$/boe) • Oil & Gas cash cost < US$10/boe 68 96 40 79 81 • 1H 2024 Capex US$152mn 9.1 9.5 <10 • Full year guidance US$350mn, ~54% 6.9 8.3 7.0 drilling capex, 87 wells planned full 2020 2021 2022 2023 1H 2024 2024 year Cash Cost Realised Oil Price
Slide 9: 11 active rigs with US$191mn drilling capex in 2024
11 active rigs with US$191mn drilling capex spend in 2024 Drilling Activity Q1 2024 Q2 2024 Q3 2024 Q4 2024 Bualuang BB-19ST1 Bualuang/Rig Hakuryu & BB-20ST1 & BB-16ST1 Corridor Suban/Rig Apexindo-10 Suban 27 Suban 25* Rawa/Rig Dreco Rawa 53 Dayung/Rig Dreco Dayung 2B & 5B Sumpal/Rig EPI AR-09 Sumpa
Slide 10: Anthony R. Mathias, Chief Financial Officer
Anthony R. Mathias Chief Financial Officer 10
Slide 11: Strong fundamentals supported by favorable oil price
Strong fundamentals supported by favorable oil price EBITDA (US$mn) • 1H 2024 EBITDA US$650mn above 163 160 1H 2023 US$634mn, higher oil and gas 153 prices offsetting reduced Corridor working 94 interest • Q2 2024 EBITDA US$322mn slightly lower 1,593 1,255 than Q1 2024, US$328mn, due to 667 650 turn
Slide 12: Delivering results to reward all stakeholders
Delivering results to reward all stakeholders Equity MEDC vs Brent vs IDX LQ 45 • Average annual shareholder return from 2022 7 Jul 2023: +189% CAGR 57%1 . Share price outperformed both The Successful IPO of AMMN Brent and IDX LQ45 • 2023 dividends US$70mn, IDR45 per share, 2022 12 Dec 2023: Complet
Slide 13: Amri Siahaan, Chief Administrative Officer
Amri Siahaan Chief Administrative Officer 13
Slide 14: Reports in accordance with 2016 GRI Standards
Reports in accordance with 2016 GRI Standards and subsequent updates Improved quality of disclosure in our reporting by increasing the number of GRI performance indicators disclosed and assured by Ernst & Young year-on-year 96 indicators 93 indicators 86 indicators 75 indicators PT Medco Energi Inte
Slide 15: ESG ratings and CDP score
AAA We support AA CDP Score Report - A A A Climate Change BBB BBB Since 2022, PT Medco Energi Internasional Tbk received an MedcoEnergi’s Average Performance BB BB BB MSCI ESG Rating of A. CDP Score Oil & Gas Global Extraction & Asia Average Production Dec-19 Dec-20 Nov-21 Dec-22 Nov-23 2021* C C B-
Slide 16: Achieved emissions reduction targets ahead of plan
Achieved emissions reduction targets ahead of plan Implemented Achieved Reduced Oil & Gas Scope 1 & 2 2025 Interim Targets emissions1 41 GHG reduction Initiatives throughout 2023 22% 147,963 tCO2e 2 years emission reductions ahead 2024 Ongoing Initiatives of plan Reduced methane (CH4) • Flare avoida
Slide 17: Expanding supply of clean energy: Ijen geothermal
Expanding supply of clean energy • Phase 1 development of 34 MW geothermal facilities • Completed drilling wells, confirming up to 40MW capacity • Overall project progress ~93%, commercial operation in Q1 2025 • Project cost: ~US$140mn • Medco (51%), Ormat (49%) Timeline: Q2 2024 Q3 2024 Q4 2024 Q1
Slide 18: Expanding supply of clean energy: solar PV and storage
Expanding supply of clean energy • Over 2GWp of PV panels and 500MW of battery energy storage • Export to Singapore premium market • Preparation for Offshore and Onshore Surveys • Net equity capex ~US$300mn Timeline: Aug 2023 2024 2025 2027 2028 Conditional FEED Final Investment Construction and Com
Slide 19: Roberto Lorato, Chief Executive Officer
Roberto Lorato Chief Executive Officer 19
Slide 20: 2024 guidance and outlook
US$ US$ 145 - 150 mboepd 4,100 GWh 430 mn <10/boe <2.5 x Mid-cycle price at US$65/bbl 1H 2024: 153 mboepd 1H 2024: 2,003 GWh 1H 2024: US$188mn 321 1H 2024: US$7.0/boe 1H 2024: 2.2x New reserves from Natuna, Corridor, Senoro, Start production from West Belut and Forel Bangkanai and Oman Block 60 fiel
Slide 21: Strategy: Oil & Gas, Clean Power, Copper & Gold Mining
Oil & Gas • Aggregating large, high-margin, producing assets • Add value & extend reserve life through low-risk exploration in producing assets • Increase efficiency, abating emissions, growing gas portfolio as a transition fuel Clean Power • Expand clean and renewable portfolio with larger scale pr
Slide 22: Presenters / Q&A
Roberto Lorato Anthony R. Mathias Ronald Gunawan Amri Siahaan 22 Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Administrative Officer
Slide 23: Appendix
Appendix MEDCOENERGI
Slide 24: Asset footprint map
Tanzania Yemen Thailand Laos Vietnam Bualuang Cambodia West Bangkanai Simenggaris South Natuna Sea Block B North Block A Sokang Tarakan Beluga Geothermal Sarulla Donggi Senoro LNG Mexico Oman Bangkanai Singapore Riau IPP Corridor & TGI Pipeline Batam IPP Kalimantan Sulawesi South Sumatra Region (SSB
Slide 25: Acquisition criteria and portfolio rationalization
We continue to focus only on value- and credit-accretive acquisitions, and strategic portfolio rationalization Value-Adding Acquisitions Strategic Portfolio Rationalization Our acquisition criteria targets Sale of Mature Assets, Natuna Sea Block B, US$225mn assets in Southeast Asia and 2016 Acquired
Slide 26: CO2 storage potential in Indonesia
Medco operates 12 producing PSCs in Indonesia with significant CO2 Storage potential Potential Storage Hubs High CO2 Gas Field Developments CCS Opportunities CCS Progress • Decarbonize Medco high CO2 gas fields (Corridor & South • CCS is a key element of MedcoEnergi’s climate change Sumatera) strate
Slide 27: Oil & Gas metrics
1H 1H YoY FY FY YoY Net 2P Reserves, MMBOE Metrics 2024 2023 ∆% 2023 2022 ∆% 1H 2024 Production1 5-yr 2P RRR : 1.9% Oil, MBOPD 42.2 32.1 31.5 32.1 33.5 (4.2) 5-yr 2P FD&A : US$5.4/boe Gas, MMSCFD 606.2 707.2 (14.3) 697.4 704.1 (1.0) 8.4 years 10.6 years 9.3 years Lifting/Sales 55 539 24 74 481 51 53
Slide 28: Power metrics
1H 1H YoY FY FY YoY Metrics Gross Operating Installed Capacity, MW 2024 2023 ∆% 2023 2022 ∆% IPP Sold and O&M Capacity1 2,864 2,844 2,844 2,288 939 919 919 IPP Sold, GWh 2,003 2,003 0 4,155 3,993 4.1 638 Renewables, GWh 409 419 (2) 801 855 (6.3) Non Renewables, GWh 1,594 1,584 1 3,353 3,138 6.9 1,92
Slide 29: Copper and gold metrics
Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (Koz) 1H 1H YoY FY FY YoY Metrics 31/12/2023 31/12/2023 2024 2023 ∆% 2023 2022 ∆% Production 13,400 15,368 Copper, Mlbs 235.6 133.7 76.2 312.0 463.9 (32.7) Gold, Kozs 494.9 171.5 188.6 463.5 730.7 (36.6) 7,500 34,400 6,213 24,5
Slide 30: 1H 2024 financial summary
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$81 US$1,165 US$451 US$650 7% Consolidated 4% Consolidated 4% Consolidated 2% Price /bbl million million million Gas US$7 Restricted US$1,047 Restricted US$415 Restricted US$627 Price /MMBTU 3% Group million 10% Group million 4% Group 3% milli
Slide 31: Q2 2024 financial summary
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$82 US$609 US$219 US$322 3% Consolidated 9% Consolidated 6% Consolidated 2% Price /bbl million million million Gas US$7 Restricted US$545 Restricted US$200 Restricted US$310 Price /MMBTU 0% Group million 9% Group million 7% Group million 2% CA
Slide 32: 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
PT Medco Energi Internasional — H1 2024 Earnings Presentation on 6ix