Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — FY2021 and Q1 2022 Earnings Presentation
26 slides from Pt Medco Energi Internasional Tbk's earnings presentation, July 2022
Slide 1: PT Medco Energi Internasional Tbk, Jakarta, July 2022
PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) Jakarta, July 2022
Slide 2: Performance Summary
Performance Summary Key Messages 3 Highlights 4 Corridor Block 5 Business Strategy and Core Business 6–7 Road to Net Zero 8–9 Financial Performance 10 Capital Structure 11 Guidance 2021 & 2022 Production and Expenditure 12 – 13 What To Expect in 2022 14 Appendix MedcoEnergi Portfolio and Key Assets
Slide 3: Record Financial Performance
Record Financial Performance Corridor Acquisition closed Senoro PSC extended Corridor - Central Grissik Plant New Dividend Guidance Revised Leverage Target Net Zero Energy Transition Targets Energy Council Asia Pacific “Upstream Company of the Year” Senoro Gas Plant Sumbawa PV 26 MWp 3
Slide 4: Financial & Operational Performance, Sustainability, Growth, Capital Structure
FINANCIAL & OPERATIONAL PERFORMANCE SUSTAINABILITY • Record 2021 and Q1-22 EBITDA and Net Income • Issued Energy Transition plan for Net Zero 2050/2060 • Significant ROE improvement • MSCI B to BB (2020) to BBB (2021) • 2021 Production 94 mboepd; 2,718 GWh sales • Sustainalytics 49.9 to 46.9 (2020)
Slide 5: Corridor acquisition closed and integration on track
Corridor acquisition closed and integration 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” MedcoEnergi (operator) - 54% R
Slide 6: Building a Leading Southeast Asian Energy and Natural Resources Company
Building a Leading Southeast Asian Energy and Natural Resources Company CLIMATE CHANGE STRATEGY USD 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 7: 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 USD BOND RESTRICTED GROUP Oil & Gas Clean Power Copper & Gold Mining 2022 160 913 MW 1,925 MW 25,000 ha 120,000 3 Production Guidance mboepd IPP O&M Mineral mining rights area Tonnes
Slide 8: Road to Net Zero: Climate change strategy
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 9: 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 10: EBITDA and Net Income
Consolidated EBITDA (US$mn) • 2021 EBITDA 44% increase YoY. Q1-22 EBITDA US$313mn, CFO 100 US$206mn. RG EBITDA US$301mn 68 63 68 52 40 • 2018 – 2019 Net Income reduced 454 by Phase 7 development, 2020 620 714 433 523 495 313 was impaired by COVID-19 related 2017 2018 2019 2020 2021 Q1-221 low energy
Slide 11: Consistent RG debt repayment
• Consistent RG debt repayment since 2019 Consolidated Debt, Price, and Production (US$ bn) Ophir acquisition, driven by strong operating 87 85 103 100 94 127 cash flow, capex discipline and equity raises 100 52 68 63 68 • Corridor acquisition funded through 40 3.3 US$400mn 2028 Notes (Q4-21) and 2-
Slide 12: Production and power sales, 2021 and Q1-22
2021 and Q1-22 Actual (mboepd) Guidance 160 • Oil and gas production: 2021 94 mboepd, Q1-22 127 21% 127 mboepd, 184 mboepd pro-forma2 94 26% • Hedged1 2H-22 9.5% production at US$52.5/bbl, 94 126 58% and 4.7% 2023 at US$50/bbl 60 48% 34 33 26% 34 21% 2021 Q1-22 Indexed & 2022 Indexed & 2022 Guidance
Slide 13: Cash cost and 2022 guidance capex
2021 and Q1-2022 Cash Cost/Unit3, US$/boe • 2021 Capex spending for developments in 100 68 63 68 Natuna and Riau IPP 40 • 2021 Oil & Gas cash costs2 US$9.8/boe, Q1-22 US$8.0/boe 9.9 9.1 9.8 <10 8.4 • Corridor procurement synergy supports 8.0 margins despite price inflation 2018 2019 2020 2021 Q1-22
Slide 14: What to expect in 2022
New GSAs on Corridor, Natuna and Senoro Fully integrate Corridor Medco Organisation Dividend payments and lower RG leverage funded from excess cash Continued selective portfolio management Place into service Natuna projects, and Sumbawa PV FID for Ijen Geothermal and Bali PV by Q4-22; Progress Senor
Slide 15: Appendix
= APPENDIX
Slide 16: MedcoEnergi portfolio map
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 17: 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 18: 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 19: 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 20: Riau IPP placed into service
Place into service February 2022 • Combined Cycle 275MW Gas Power Plant, commercial operation on 10 February 2022 • 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 overcame numerous Covid-
Slide 21: Oil and gas metrics
Q1 Q1 YoY FY FY YoY Net 2P Reserves, MMBOE Metrics 2022 2021 ∆% 2021 2020 ∆% Production1 Q1-2022 2P RLI : 8.5x Oil, MBOPD 32.7 38.1 (14.1) 34.4 40.4 (14.9) 5-yr 2P RRR :1.8x 125 504 Gas, MMSCFD 510.4 336.4 51.7 319.7 322.3 (0.8) 5-yr F&D3 : US$7.7/boe 107 389 10 311 Lifting/Sales1 29 Oil Lifting, MB
Slide 22: Power metrics
Q1 Q1 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 2,838 2,864 IPP Sold, GWh 837 666 25.7 2,718 2,639 3.0 638 638 2,288 913 939 Renewables, GWh 212 217 (2.4) 871 817 6.6 638 Non Renewables, GWh 625 450 38.9 1,84
Slide 23: Amman Mineral Nusa Tenggara
Amman Mineral Nusa Tenggara Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (Koz) Q1 Q1 YoY FY FY YoY 31/12/2021 31/12/2021 Metrics 2022 2021 ∆% 2021 2020 ∆% Production 14,797 16,093 Copper, Mlbs 93.4 48.4 93.1 233.7 293.9 (20.5) Gold, Kozs 168.5 27.1 521.7 156.4 132.1 18.4
Slide 24: FY2021 financial summary
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$68.0 Incl. US$1,323 Incl. US$566 Incl. US$714 Price 69% MPI 20% MPI 80% MPI 44% /bbl million million million Gas US$6.5 26% Excl. US$1,201 25% Excl. US$506 97% Excl. US$677 49% Price MPI MPI MPI /MMBTU million million million CASH & CASH TOTA
Slide 25: Q1-22 financial summary
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$99.7 Incl. US$489 Incl. US$242 Incl. US$313 Price /bbl 70% MPI million 62% MPI million 102% MPI million 102% Gas US$7.7 35% Excl. US$458 Excl. US$224 Excl. US$301 Price /MMBTU MPI million 64% MPI million 108% MPI million 104% Blended US$55.6
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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