Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — 9M 2023 Earnings Presentation
28 slides from Pt Medco Energi Internasional Tbk's earnings presentation, November 2023
Slide 1: PT Medco Energi Internasional Tbk
PT Medco Energi Internasional Tbk (IDX Ticker: MEDC) Jakarta, November 2023
Slide 2: Contents and disclaimer
Key Messages 3 Performance Update 4 Accretive, Value Adding Acquisitions 5 Operational and Financial Performance 2018 – 2023 6 What to Expect Next 7 Business Strategy 8 Production & Power Sales 9 Capex & Opex 10 Financial Performance 11 Capital Structure 12 ESG Performance 14 – 15 Portfolio and Key
Slide 3: Key Messages
Solid Operational Performance Improving Oil Prices Successful AMMN IPO Corridor – Suban Plant Reserve Additions Portfolio Management Energy Transition Ijen Geothermal Sumbawa PV 3
Slide 4: Performance Update
FINANCIAL & OPERATIONAL PERFORMANCE ENERGY TRANSITION AND SUSTAINABILITY • Meet or exceed all 2023 operational guidance • MOECO partnership in Bonjol Geothermal asset • AMMN 2023 Net Income lower • Sustainalytics score improved to 29.8; Medco is now ranked • Medco has grown substantially since 2018
Slide 5: Accretive, Value Adding Acquisitions
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$225mn assets in Southeast Asia and 2016 Acquire
Slide 6: Operational and Financial Performance 2018 – 2023
HYDROCARBON PRODUCTION (MBOEPD) POWER CAPACITY (MW) 2P RESERVES (MMBOE) Liquids Fixed Priced Gas Oil Price (US$/bbl) Gas IPP Renewables Oil Gas Gas Indexed Priced Gas 939 919 9M 2023 2P RLI: 9.7 year 68 68 96 77 63 491 40 645 638 638 638 163 160 565 545 21% 297 290 290 290 282 85 103 100 94 129 126
Slide 7: What to Expect Next
New GSAs on Corridor and Senoro Additional reserves from Corridor, Natuna, Senoro, Tanzania and Middle East Acquisition Dividend payments and debt repayments Selective portfolio management; close the Middle East acquisition Complete ongoing Natuna projects; progress Corridor, Senoro and Tanzania dev
Slide 8: Building a Leading Southeast Asia Focused Energy and Natural Resources Company
Building a Leading Southeast Asia Focused Energy and Natural Resources Company Oil & Gas • Aggregating large, high-margin, producing assets • Add value by extending reserve life through low-risk exploration on producing licenses • Increasing efficiency, abating emissions, growing gas portfolio as a
Slide 9: Production & Power Sales
9M 2023 Actual (mboepd) Guidance • Oil & Gas production 161 mboepd 163 161 160 21% 21% • Production 80% gas and 20% liquids; 41% total production exposed to current price 129 129 126 59% 58% environment, 59% production at fixed prices • Power 3,079 GWh sales following the Riau IPP 34 20% 34 21% 32 2
Slide 10: Capex & Opex
9M 2023 Cash Cost/Unit (US$/boe) • Oil & Gas capex US$155mn, Power1 US$55mn. 68 63 68 96 40 77 • Capex spending for developments in Natuna, Corridor and Ijen Geothermal IPP 9.9 9.1 9.5 <10 8.4 7.5 • Oil & gas cash costs2 US$7.5/boe 6.9 2018 2019 2020 2021 2022 9M 2023 2023 Guidance Cash Cost Realise
Slide 11: Financial Performance
Consolidated EBITDA (US$mn) • EBITDA US$941mn, Net Income 163 161 US$242mn, CFO US$550mn 85 103 100 94 96 63 • Oil & Gas prices down 24% and 16% 68 40 68 77 1,593 respectively Y-o-Y • Oil & Gas production 161 mboepd flat 523 620 495 667 Y-o-Y 941 • Power generation up 5% 2018 2019 2020 2021 2022 9M
Slide 12: Capital Structure
Consolidated Debt and Production (US$ bn) • Annual average shareholder return 25% p.a. during 2018 – 20231 163 161 • 2022 dividend: IDR39 per share 103 100 • Consolidated Gross Debt US$2.9bn and 85 94 Net Debt US$2.2bn, down 12% and 15% Y-o-Y respectively 2.8 2.2 3.2 2.6 2.7 2.4 3.0 2.1 3.2 2.4 2.9
Slide 13: Appendix
= APPENDIX
Slide 14: ESG Performance
We support Average Performance Oil & Gas Global Your CDP Score Extraction & Asia Average Production As of 2022, PT Medco Energi Internasional 2021 C C B- B- Tbk received an MSCI ESG Rating of A. MSCI DISCLAIMER STATEMENT REFER TO CLOSING SLIDE 2022 B C C C A A- B 2022 B- 49.9 C 2021 Severe Risk -2.3
Slide 15: ESG Performance and Targets
49.9 46.9 42.2 36.7 INTERIM TARGET 62% 28% 5.4 60% 28% 64% 38% 79% 23% 26% 2025: Disclose and 30% million set targets for tCO2e 164 Scope 3 emissions thousand tCO2e 12% 72% 72% 62% 15% 77% 74% 70% 16% 19% 19% 18% 20% 38% 40% 36% 21% 25% 30% 37% 2019 BB 2020 BB 2021 BBB 2022 A 2025 2030 Gas Productio
Slide 16: Portfolio and Key Assets map
Tanzania Yemen Thailand Laos Bualuang Vietnam Cambodia Chim Sao and Dua Bangkanai Block A South Natuna Sea Block B North Tarakan Sokang Beluga Simenggaris Mexico Libya Oman Geothermal Sarulla South Sokang Donggi Senoro West Bangkanai LNG Singapore Riau IPP Corridor & Batam IPP TGI Pipeline Kalimanta
Slide 17: Completed Corridor integration
Completed Corridor integration Key Facts Integration and Adding Value • Sumatra based PSC with 7 producing gas fields, and • Immediately accretive with production volumes and sales 1 producing oil fields prices above acquisition case • Indirect ownership of gas pipelines to Duri and Singapore • Comp
Slide 18: 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 19: Integrated phased gas development (Senoro)
Integrated phased gas development 1 Mtpa 1 Mtpa JERA • Joint Operated onshore license, first PEP (Japan) production Q3 2015 (Donggi & Matindok) 250 + 20 0.3 Mtpa Kyushu Electric (Japan) • 20 Year PSC Extension effective from 105 85 DSLNG Korea Gas December 2027, monetizing ~2.0 TCF 1 Mtpa 0.7 Mtpa (
Slide 20: Unlocking gas reserves of 12 TCF from Blocks 1 and 4
Unlocking gas reserves of 12 TCF from Blocks 1 and 4 • Acquired through Ophir plc take-over in 2019 • The JV partners in Block 1 and 4 are Medco (20%), Shell (operator, 60%), and Pavilion Energy (20%) • Block 1 & 4 and Block 2 (Equinor and ExxonMobil) have agreed to unitize the blocks and jointly de
Slide 21: Expanding supply of clean and environmentally friendly energy
Expanding supply of clean and environmentally friendly energy 21
Slide 22: Carbon Capture & Storage opportunities
Medco Operates 10 Producing PSCs in Indonesia with Significant Carbon Capture & Storage (“CCS”) Potential CCS Opportunities CCS Progress • CCS technology can unlock development of Medco high CO 2 • CO2 storage volume has been estimated for most Medco assets gas fields • Indonesian CCS regulations ha
Slide 23: 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 US$ NOTES RESTRICTED GROUP Oil & Gas Clean Power Copper & Gold Mining Production 161 Installed Capacity 919 1,925 Production 199 259 mboepd MW IPP MW O&M Mlbs Copper Koz Gold 80/20 41
Slide 24: Oil and Gas business statistics
9M 9M YoY FY FY YoY Net 2P Reserves, MMBOE Metrics 2023 2022 ∆% 2022 2021 ∆% 9M 2023 Production1 5-yr 2P RRR : 1.1x Oil, MBOPD 31.6 33.8 (6.5) 33.5 34.4 (2.6) 5-yr 2P FD&A : US$6.4/boe 8.4 years 9.7 years Gas, MMSCFD 706.2 691.4 2.1 704.1 319.7 120.3 20 481 38 52 491 125 4 Lifting/Sales 389 52 Oil L
Slide 25: Power business statistics
9M 9M YoY FY FY YoY Gross Operating Installed Capacity, MW Metrics 2023 2022 ∆% 2022 2021 ∆% IPP O&M IPP Sold and O&M Capacity1 2,788 2,788 2,864 2,844 IPP Sold, GWh 3,079 2,930 5.1 3,993 2,718 46.9 638 638 2,288 939 919 Renewables, GWh 603 637 (5.3) 855 871 (1.8) 638 Gas IPP, GWh 2,475 2,294 7.9 3,
Slide 26: Amman Mineral Nusa Tenggara
Amman Mineral Nusa Tenggara Copper Gross Reserves & Resources (Mlbs) Gold Gross Reserves & Resources (Koz) 9M 9M YoY FY FY YoY 31/12/2022 Metrics 31/12/2022 2023 2022 ∆% 2022 2021 ∆% Production 14,000 15,575 Copper, Mlbs 199.5 330.8 (39.7) 463.9 233.7 98.5 Gold, Kozs 259.2 553.7 (53.2) 730.7 156.5 3
Slide 27: Financial statistics
AVERAGE REVENUE GROSS PROFIT EBITDA REALIZED PRICE Oil US$77.0 US$1,670 US$733 US$941 24% Consolidated 5% Consolidated 17% Consolidated 21% Price /bbl million million million Gas US$7.1 Restricted US$1,444 Restricted US$679 Restricted US$906 Price /MMBTU 16% Group million 16% Group million 21% Group
Slide 28: 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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