Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — H1 2021 Earnings Presentation
24 slides from Pt Medco Energi Internasional Tbk's earnings presentation, Nov 4, 2021
Slide 1: 1H-2021 Company Update
1H-2021 COMPANY UPDATE PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) Jakarta, 4 November 2021
Slide 2: Contents
CONTENTS Performance Summary Executive Summary 3 Operational Summary 4 Business Updates 5 Financial Summary 7 Business Guidance 2021 & 2022 Guidance 10 Climate Change Strategy 12 What to Expect in 2021 14 Appendix Company Overview 15 Portfolio Management 16 Portfolio Footprint 17 Business Statistics
Slide 3: Executive Summary
EXECUTIVE SUMMARY 1H21 Oil & Gas Production: 94mboepd; Power Sales: 1,355GWh Realized oil price US$62.3/bbl. ~8.1% of production hedged in 2H-21 All three business segments delivering profit Cash and Cash Equivalents US$551mn; Debt US$2.6bn, US$442mn debt1 repaid in LTM. Net Debt to EBITDA(1) at 3.1
Slide 4: Operational Summary
OPERATIONAL SUMMARY • 1H21 Oil and gas production 94 mboepd. Production capacity is ~110 mboepd • Slow recovery in Indonesian gas demand in key markets, expects domestic gas in Indonesia will continue to improve in 2022 • 1H21 Oil & Gas cash costs US$9.6/boe, slightly higher due to costs to remedy u
Slide 5: Business Update – Oil and Gas
BUSINESS UPDATE – OIL AND GAS Gas volumes have begun to recover since lockdown restrictions fully eased Oct 2021. Oil prices volatile but around a high mean Business updates Gas volumes recovering (bbtu/d) • 2021 production guidance 95 mboepd. Production capacity is ~110 mboepd ‒ Indonesian gas dema
Slide 6: Business Update – MPI and AMNT
BUSINESS UPDATE – MPI and AMNT MPI development pipeline weighted towards renewable sources. AMNT phase 7 production well timed with resurgence in copper prices. Medco Power MPI: Strong pipeline of projects with increasing penetration of renewables in the mix (MW) • Commissioning Riau gas IPP 275 MW
Slide 7: Financial Summary
FINANCIAL SUMMARY • 1H 2021 EBITDA US$318mn, Oil price US$62.3/bbl, 61% up Y-o-Y, gas prices US$5.9/mmbtu • Profits on three business segment, Oil & Gas US$88mn, Power US$22mn and AMNT US$33mn following price improvement and Phase 7 performance. Profits were offset by headquarters and financing char
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated EBITDA (US$mn) • EBITDA 1H-2021 was US$318 million, a 15% increase Y-o-Y, mainly due to 68 63 62 52 recovering commodity prices 49 42 40 • Realized oil prices were US$62.3/bbl, 61% higher Y-o-Y (US$38.7/bbl). 585 627 502 Weighted average gas prices 265 433 318 225 U
Slide 9: Deleveraging
DELEVERAGING • Consolidated Debt US$2.6bn, down 14% Y-o-Y. Consolidated Debt and Production (US$ bn) RG Debt US$2.2bn and RG Net Debt US$1.8bn, 66 87 85 103 100 94 down 17% and 11% Y-o-Y respectively 68 62 63 40 52 42 • Ophir debt has been effectively repaid with 2.8 3.2 2.6 2.6 2.7 2.6 scale, geogr
Slide 10: 2021 Guidance: Production
2021 GUIDANCE: PRODUCTION 2019-2021 (mboepd) 2021-2022 Guidance (mboepd) 1H-2021 Actual • Production 94 mboepd within guidance 115 110 • Hedge puts of ~14% 2021 production, 2H-2021 103 ~8.1% at ~US$50/bbl, 1H-2022 3.8% production 100 94 95 100% (95-100) at ~ US$51/bbl as at June 2021 • Gas demand be
Slide 11: 2021 Guidance: Expenditure
2021 GUIDANCE: EXPENDITURE 1H-2021 Actual Cash Cost/Unit 2, US$/boe 103 100 • Oil & Gas Capex US$14mn. Activities ramping up 87 85 94 95 but will be under full year guidance of US$150mn 56 56 66 • Power1 US$14 mn, to progress Riau Project 15.4 commissioning. On track to meet or be under full 12.3 9.
Slide 12: Climate Change Strategy
CLIMATE CHANGE STRATEGY Medco has committed to achieve Scope 1 & 2 Net Zero emissions by 2050, and Net Zero including Scope 3 by 2060. Managing Transition Risks • Hydrocarbons will be a large part of the world’s energy mix for the medium term, especially in Asia Emissions Intensity Transition to Red
Slide 13: Managing Transition Risks
MANAGING TRANSITION RISKS E&P and MPI Scope-1 GHG Emissions(2) (in 1,000 tCO2eq) 12% GHG Scope 1+2 (Intensity) – Global O&G Companies(3) GHG Scope 1+2 (Intensity) – Medco E&P and MPI Reduced E&P Scope 1 intensity (ktCO2e / Mtoe) ktCO2e, tCO2eq/1,000 TOE HC product 2018-2020 800 248 237 218 212 600 1
Slide 14: 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. Consistently repay debt quarter-on-quarter Maintain cost focus with Oil and Gas cash costs < US$10/boe Place into service Riau IPP
Slide 15: Company Overview
COMPANY OVERVIEW Medco has three core business segments; all profitable in 1H-21. Climate Change Strategy USD Bond Restricted Group Oil & Gas Clean Power Copper & Gold Mining 2021 production guidance: 95 mboepd (110 mboepd Medium sized joint venture gas, geothermal, hydro Ownership of 23% in A
Slide 16: 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 17: 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 18: Oil and Gas Statistics
OIL AND GAS STATISTICS YoY Metrics 1H-20 1H-21 ∆% Net 2P Reserves, MMBOE Net Contingent Resources, MMBOE Production2 294 289 949 944 Oil, MBOPD 41.0 35.8 (12.6) Gas, MMSCFD 325.8 312.4 (4.1) Lifting/Sales 153 149 2 Oil Lifting , MBOPD 39.3 35.3 (10.1) Gas Sales, BBTUPD 306.8 291.7 (4.9) 845 836 Oman
Slide 19: Medco Power Statistics
MEDCO POWER STATISTICS YoY Metricsº 1H-20 1H-21 ∆% Gross Installed Capacity, MW IPP Sold and O&M Capacity IPP O&M IPP Sold, GWh 1,136 1,355 19.3 2,788 2,788 2,904 Renewables, GWh 412 443 7.5 638 638 939 Non Renewables, GWh 724 912 25.9 O&M Capacity, MW 2,150 1,650 (23.2) 2,150 2,150 1,965 Average Re
Slide 20: Amman Mineral Statistics
AMMAN MINERAL Amman STATISTICS Mineral Nusa Tenggara YoY Metrics 1H-20 1H-21 ∆% Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (Koz) Production Copper, Mlbs 106.0 103.1 (2.8) Batu Hijau Elang 15,140 Batu Hijau Elang Gold, Koz 37.0 55.0 48.5 16,650 Sales Copper, Mlbs 92.0 95
Slide 21: Financial Statistics (1H-2021 vs 1H-2020)
FINANCIAL STATISTICS (1H-2021 vs 1H-2020) Average Revenue Gross Profit EBITDA Realized Price Oil Incl. Incl. Incl. Price US$62.3 61% MPI US$636 12% MPI US$234 22% MPI US$318 15% /bbl million million million Excl. Excl. Gas Price US$5.9 8% MPI US$572 15% Excl. US$205 26% MPI US$298 16% MPI /MMBTU mil
Slide 22: 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 a million trees Tr
Slide 23: Best in Class Corporate Governance
S OCIAL GOVERNANCE BEST IN CLASS CORPORATE GOVERNANCE MedcoEnergi’s revised code of conduct is aligned with international best practices Principal guidance on ethical conduct for management and employees Commitment & responsibility • Corporate values and code of conduct • Expectation of everyone • E
Slide 24: 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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