Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — Investor Day (September 2024)
52 slides from Pt Medco Energi Internasional Tbk's investor day presentation, Sep 11, 2024
Slide 1: Capital Markets Day
Capital Markets Day 11 September 2024 1
Slide 2: Agenda
10.00 – 10.10 Company Overview Hilmi Panigoro, President Director 10.10 – 10.30 Strategy Update Roberto Lorato, Chief Executive Officer 10.30 – 10.45 Oil & Gas Ronald Gunawan, Chief Operating Officer 10.45 – 11.00 Power Eka Satria, Medco Power Chief Executive Officer 11.00 – 11.05 Copper and Gold Mi
Slide 3: Disclaimer
THIS DOCUMENT IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE The following presentation has been prepared by PT Medco Energi Internasional Tbk
Slide 4: Presenting management team
Hilmi Panigoro Roberto Lorato Anthony R. Mathias President Director Chief Executive Officer Chief Financial Officer Ronald Gunawan Amri Siahaan Eka Satria Chief Operating Officer Chief Administrative Officer Medco Power Chief Executive Officer 4
Slide 5: Hilmi Panigoro, President Director
Hilmi Panigoro President Director 5
Slide 6: Delivering value through accretive Oil & Gas acquisitions and investments in Power and Mining
Delivering value through accretive Oil & Gas acquisitions and investments in Power and Mining Three core business lines Expanding horizons Successful Oman Oil & Gas Clean Power Copper & Gold Mining acquisition Expanding 2023 horizons Successful Reaching Amman Mineral new heights IPO Acquired operato
Slide 7: Diverse energy mix of Oil & Gas, Clean Power, and Copper & Gold Mining
Diverse energy mix of Oil & Gas, Clean Power, and Copper & Gold Mining Thailand Laos Tanzania Yemen Vietnam Bualuang Cambodia West Bangkanai Simenggaris South Natuna North Sea Block B Sokang Tarakan Block A Donggi Senoro Geothermal LNG Sarulla Beluga Bangkanai Mexico Oman Riau IPP Singapore Corridor
Slide 8: Roberto Lorato, Chief Executive Officer
Roberto Lorato Chief Executive Officer 8
Slide 9: Indonesia is the most populous country in Southeast Asia with fast-growing economy
Indonesia is the most populous country in Southeast Asia and has one of the fastest-growing economies Southeast Asia & Indonesia GDP1 Southeast Asia & Indonesia workforce & GDP per capita2 Indonesia GDP Indonesia working age population Other SEA countries GDP Others SEA countries working age populat
Slide 10: Indonesian energy supply expected to double by 2050
Indonesian energy supply expected to double by 2050; renewables rising but fossil fuels remain the baseload Indonesia power capacity (GW)1 Indonesia energy supply (EJ)2 519 18% 9.5 48% 30% 295 1.9 2.5 17% 20% 2.0 139 3.5 13% 84 3.0 63 32% 3.3 4.5 22% 2022 2025 2030 2040 2050 2025 2050 2025 2050 • En
Slide 11: Supply gap beyond 2025 presents an investment opportunity through mining
Supply gap beyond 2025 presents an investment opportunity for boosting primary supply through mining Copper demand and supply1 World’s largest estimated copper-equivalent reserves2 40 Primary supply mined - base case 40 Reserves Secondary supply and reuse Batu Hijau Primary supply mined - high case
Slide 12: Medco's business strategy underpinned by regional growth and energy transition
Medco’s business strategy is underpinned by forecasts of regional economic growth & long-term energy transition Expanding successful Oil & Gas business model to support growing energy demand Investing in Clean & Renewable Power and in Copper Mining to capture long-term growth Committed to decarboniz
Slide 13: Proven track record of value-accretive acquisitions and effective integration
Proven track record of delivering growth through value-accretive acquisitions and effective integration Ophir Energy plc, US$544mn Oman 60 & 48 EPSA, US$713mn Southeast Asia Expansion Expanding horizons • Producing assets in Indonesia, • Attractive fiscal terms and low-cost Thailand, and Vietnam pro
Slide 14: Selectively target large, high-margin, producing assets in Southeast Asia and Middle East
Selectively target large, high-margin, producing assets in Southeast Asia and the Middle East Industry trends from independent research report 1 Acquisition criteria “At least 2 billion BOE is on the market or rumored to be for Improve profitability and credit profile sale across a mixture of mature
Slide 15: Leading Southeast Asian company with large reserves base and production
Leading Southeast Asian company with large reserves base and production Net 2P Reserves, MMBOE FY 2023 5-yr 2P RRR : 233% 8.4 years 10.6 years 5-yr 2P FD&A : US$6.7/boe commercial reserves among 55 539 Largest Southeast Asian peers1,2 125 20 481 51 53 389 52 working interest production in Highest So
Slide 16: New projects and expansions with larger scale and attractive economics
New projects and expansions with larger scale and attractive economics Gas to Power Geothermal Solar PV Expanding footprint New greenfield development Pursuing projects with larger scale Riau, 275 MW COD 2022, 1,544 GWh power sales in 2023 Sarulla, 330 MW Sumbawa, 26MWp COD 2018, 702 GWh power sales
Slide 17: World's 5th largest copper-equivalent reserves
World’s 5th largest copper-equivalent reserves, including established, low-cost Batu Hijau mine & Elang development project Batu Hijau mine Phase 7 3.0km diameter Indonesia Phase 8 3.4km diameter Phase 7 1,000m deep Phase 8 1,400m deep Batu Hijau and Elang reserves and resources as of 31 December 20
Slide 18: Target net zero for scope 1 & 2 by 2050 and scope 3 by 2060
Target net zero for scope 1 & 2 GHG emissions by 2050 and scope 3 GHG emissions by 2060 Emissions reduction Transition to low carbon Emerging physical climate from existing operations energy portfolio risk management Technologies and best practices Growing gas as a transition fuel Climate adaptation
Slide 19: Financial discipline has delivered peer leading profitability and shareholder returns
Financial discipline has delivered peer leading profitability and shareholder returns DISCIPLINED INVESTMENT • Proactive portfolio management RETURN ON TOTAL • High-grade capital opportunities EQUITY (“ROE”) SHAREHOLDER • Controlled reinvestment rate RETURN (“TSR”) OUTPERFORMED OUTPERFORMED ESG LEAD
Slide 20: Ronald Gunawan, Chief Operating Officer
Ronald Gunawan Chief Operating Officer 20
Slide 21: Leading Southeast Asian company with large reserves base and production
Leading Southeast Asian company with large reserves base and production Net 2P Reserves, MMBOE FY 2023 5-yr 2P RRR : 233% 8.4 years 10.6 years 5-yr 2P FD&A : US$6.7/boe commercial reserves among 55 539 Largest Southeast Asian peers1,2 125 20 481 51 53 389 52 working interest production in Highest So
Slide 22: Value delivery assets: Block B, Natuna, Corridor, Bualuang
Value delivery assets Block B Natuna Corridor Bualuang 37 mboepd production1 138 mboepd production1 4.8 mboepd production1 Cost-effective, fast-track developments, and Improved economics to support further gas Monetizing extended asset value through potential CCS Hub development effective combinatio
Slide 23: Growth assets: Oman 60, Oman 48, Senoro-Toili
Growth assets Oman 60 Oman 48 Senoro-Toili 63 mboepd1 2,995 km2 69 mboepd1 Maximizing asset value exploration area Maximizing asset value Expanding horizons • 43 wells completed in 1H • Ongoing seismic study • North & South Senoro development (Phase 2B) to increase 2024, with 69 wells in 4Q 2024 pro
Slide 24: Growth assets: Bangkanai, Tanzania
Growth assets Bangkanai Tanzania 3.4 mboepd 15.4 mmboe 2,607 mmboe Oil & Gas production1 Reserves2 Reserves3 Monetize existing recoverable reserves Unlocking gas resources from Blocks 1 and 4 • Supplying domestic market with plan for PSC extension • Ten successful offshore discoveries beyond 2033 •
Slide 25: CCS is a key element of our climate change strategy
CCS is a key element of our climate change strategy Block A Potential Storage Hubs Natuna Block B Tarakan & Simenggaris Potential Potential Hub Bangkanai Hub Corridor Tomori High CO2 Gas Field Rimau South Sumatera Developments Lematang Sampang & Madura Offshore CCS opportunities Developing CO2 field
Slide 26: Solar PVs on our assets
Solar PVs on our assets Matak Shorebase Oyong Wellhead Platform (WHP) Bronang Wellhead Platform (WHP) • Installed solar panels at 3 buildings at • Air instrument project at Oyong in • New Bronang Platform 100% our Matak Site, amounting to around East Java with 8 kWp solar PVs powered by solar PV sys
Slide 27: Eka Satria, Medco Power CEO
Eka Satria Medco Power Chief Executive Officer 27
Slide 28: Electricity demand in Indonesia projected to grow ~8% p.a.
Electricity demand in Indonesia projected to grow ~8% p.a. Total Installed Power Capacity (GW)1 Total Primary Energy Mix by Fuel Type (EJ)2 519 20 Oil Coal Gas Renewable 15 +7.8% 295 Majority for electricity 10 139 84 5 63 0 2022 2025 2030 2040 2050 2000 2010 2020 2030 2040 2050 • The aggressive exp
Slide 29: New projects and expansions with larger scale and attractive economics
New projects and expansions with larger scale and attractive economics Gas to Power Geothermal Solar PV Expanding footprint New greenfield development Pursuing projects with larger scale Riau, 275 MW COD 2022, 1,544 GWh power sales in 2023 Sarulla, 330 MW Sumbawa, 26MWp COD 2018, 702 GWh power sales
Slide 30: Supporting on-grid and captive as well as cross-border interconnection with Singapore
Supporting on-grid and captive as well as cross-border interconnection with Singapore Solar PV 2GWp DEB Gas 85 MW Bulan Island Batam Island Clean Power ELB Gas 76 MW MRPR Gas 275 MW Batam Island Riau MEB Gas 85 MW Batam Island SOL Geothermal 330 MW ELB Gas Add-On 39 MW Generating Development Explora
Slide 31: Export 600 MW of solar power to Singapore
✓ One of the largest energy solar power projects in Southeast Asia ✓ Further growth opportunities amid Singapore's 4GW renewable energy needs ✓ Export to Singapore premium market with attractive returns ✓ Building Indonesia’s capacity in PV and BESS Export 600 MW of solar power to Singapore • Pacifi
Slide 32: Amri Siahaan, Chief Administrative Officer
Amri Siahaan Chief Administrative Officer 32
Slide 33: World's 5th largest copper-equivalent reserves
World’s 5th largest copper-equivalent reserves, including established, low-cost Batu Hijau mine & Elang development project Batu Hijau mine Phase 7 3.0km diameter Indonesia Phase 8 3.4km diameter Phase 7 1,000m deep Phase 8 1,400m deep Batu Hijau and Elang reserves and resources as of 31 December 20
Slide 34: Smelter commences production in 4Q 2024, transforming AMMAN
Significant growth is expected once the smelter commences production in 4Q 2024, transforming AMMAN into a fully integrated miner-to-smelting business Exploration and Development Mining Processing and Power Expansion Smelting • Batu Hijau’s open pit life extends • Phase 7 ore mining is through • Exp
Slide 35: Amri Siahaan, Chief Administrative Officer
Amri Siahaan Chief Administrative Officer 35
Slide 36: Target net zero for scope 1 & 2 by 2050 and scope 3 by 2060
Target net zero for scope 1 & 2 GHG emissions by 2050 and scope 3 GHG emissions by 2060 Emissions reduction Transition to low carbon Emerging physical climate from existing operations energy portfolio risk management Technologies and best practices Growing gas as a transition fuel Climate adaptation
Slide 37: Translating strategy into action through investments in equipment and people
Translating strategy into action through significant investments in equipment and people development Emissions abatement Expanding solar PV portfolio Climate adaption Process optimization, operating mode Sumbawa PV, second biggest operating Engaged communities and stakeholders in adjustment, equipme
Slide 38: Sustainability roadmap 2023-2027
Sustainability 2023-2027 roadmap 2023-2027 Sustainability Roadmap 2027 2023 • Further integrate Sustainability into business to enhance value creation • Update Goals and KPIs based on 2022 Materiality Assessment • Reach top quartile ESG performer in the Oil & Gas E&P sector • Enhance Sustainability
Slide 39: 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 40: Consistent improvement in ESG ratings
Demonstrated by our consistent improvement in ESG ratings We support AAA AA CDP Score Report - A A A Climate Change Average Performance BBB BBB As of 2023, PT Medco Energi MedcoEnergi’s CDP Score Oil & Gas Internasional Tbk received an Extraction & Asia Global BB BB BB Average MSCI ESG Rating of A P
Slide 41: Anthony R. Mathias, Chief Financial Officer
Anthony R. Mathias Chief Financial Officer 41
Slide 42: Financial discipline has delivered peer leading profitability and shareholder returns
Financial discipline has delivered peer leading profitability and shareholder returns DISCIPLINED INVESTMENT • Proactive portfolio management RETURN ON TOTAL • High-grade capital opportunities EQUITY (“ROE”) SHAREHOLDER • Controlled reinvestment rate RETURN (“TSR”) OUTPERFORMED OUTPERFORMED ESG LEAD
Slide 43: Increase profitability by high grading capital
Increase profitability by high grading capital with a focus on Value Delivery and Growth Assets Ophir Corridor Oman US$mn 2024-2028 (~US$2.1bn) Acquisition Acquisition Acquisition 12% 300 36% COVID 200 31% 100 - 21% 2018 2019 2020 2021 2022 2023 2024 • Capex 2018–2023 high graded at ~US$300mn, despi
Slide 44: Disciplined portfolio management with accretive acquisitions and debt repaid within 2-3 years
Disciplined portfolio management with accretive acquisitions and debt repaid within 2-3 years Oman 60 & 48 EPSA, US$713mn Corridor PSC, US$1,355mn Financing Ophir Energy plc, US$544mn Financing • 70% debt, 30% cash South Natuna Sea Financing • Funded 60% debt, 40% cash • Debt repaid ~24-36 months Bl
Slide 45: Repay acquisition debt within 2-3 years
Repay acquisition debt within 2 – 3 years Consolidated Debt (US$bn) Ophir Corridor Oman Acquisition Acquisition Acquisition 3.5 3.2 3.0 3.2 3.2 • A strong balance sheet provides the flexibility to 3.0 2.8 2.7 2.8 2.5 2.6 2.3 2.4 2.4 2.6 2.8 fund acquisitions, and the space to reward 2.2 2.1 2.0 shar
Slide 46: Consistent application of the guiding principles generates results
Consistent application of the guiding principles generates results EBITDA and Net Income (US$mn) Bloomberg Consensus1: • FY 2024 EBITDA: 1,282 1,593 • Our acquisitions have delivered step changes in • FY 2024 Net Income: 377 1,255 size, scale, and cash generation capacity 523 620 495 667 531 650 • D
Slide 47: A virtuous circle of performing and delivering results
A virtuous circle of performing and delivering results MEDC vs Brent vs LQ 45 Jan 2022–Aug 2024 +188% • A diversified energy growth stock and a national champion • Number of shareholders and daily share +0% liquidity have risen significantly since 2018 -4% • Dividends have grown consistently and man
Slide 48: A strategy which will continue to deliver shareholder value
A strategy which will continue to deliver shareholder value 2024 Guidance US$ US$ 145-150 4,100 430 mn <10 /boe 2.5 Mid-cycle price mboepd GWh Oil & Gas: US$350mn Power: US$80mn at US$65/bbl 2025 Guidance US$ 145-150 4,500 430 mn US$ 2.5 mboepd GWh Oil & Gas: US$400mn Power: US$30mn <10 /boe Mid-cyc
Slide 49: Roberto Lorato, Chief Executive Officer
Roberto Lorato Chief Executive Officer 49
Slide 50: Building diversification and resilience for the long term
Building diversification and resilience for the long term Expanding successful Oil & Gas Investing in Clean & Renewable business model to support Power and in Copper Mining to ffordable growing energy demand A capture long-term growth Energy for ble Growth Relia ina ta b s Committed to Enhancing sha
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Slide 52: Glossary
Au Gold IPP Independent Power Producer CCPP Combined Cycle Power Plant KPI Key Performance Indicator CCS Carbon, Capture & Storage kWp Kilowatt peak CCUS Carbon, Capture, Utilization and Storage LNG Liquefied Natural Gas COD Commercial Operation Date mboepd Thousand Barrels Of Oil Equivalent Per Day
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