Pt Medco Energi Internasional Tbk · IDX:MEDC
Pt Medco Energi Internasional Tbk — FY2018 Earnings Presentation
22 slides from Pt Medco Energi Internasional Tbk's earnings presentation, 2019
Slide 1: 2018 Results
2018 RESULTS PT Medco Energi Internasional Tbk. (IDX Ticker: MEDC) BUILDING A BRIGHT AND SUSTAINABLE FUTURE
Slide 2: Contents
Contents 2 Business Update Summary 3 Financial Performance 7 Management Discussion 2019 Guidance 8 Delivering On Our Commitments 11 What to Expect 13 Appendix Business Segments Overview 14 Oil & Gas 16 Medco Power Indonesia 18 Amman Mineral Nusa Tenggara 19 Financial Tables 20 The following presenta
Slide 3: 2018 Executive Summary
2018 Executive Summary 3 EBITDA1 US$596million up by 37% year-on-year Production 85mboepd in line with guidance Strong Liquidity with cash and cash equivalent above US$600million Oil & Gas: Tarakan and Rimau PSCs extended by 20 years Power: Generated power sales 2,704 GWh up by 24% year-on-year Mini
Slide 4: 2018 Financial Summary
2018 Financial Summary 4 • Gross Profit1 US$645 million (US$632 million consolidated), 53% higher y-o-y with an improved 52% gross margin. • EBITDA1 US$596million (US$582 million consolidated), 37% higher y-o-y from improved margins, commodity and power prices and consolidation of Medco Power. • Oil
Slide 5: 2018 Financial Summary
2018 Financial Summary 5 • Received shareholder approval for non-preemptive private placement of up to 10% of issued shares at a minimum price of IDR868/share, ~US$100million. Discussions continue to place these shares to qualified and preferred buyers. • Drilling, project efficiencies and deferrals
Slide 6: 2018 Operational Summary
2018 Operational Summary 6 • Oil and gas production 85mboepd and in line with guidance, unit cash costs US$8.7 per boe • 20-year extensions for Rimau and Tarakan PSCs. • The Nowera-1 exploration well discovered gas of 27TBTU in South Sumatra PSC, plan of development approved, first gas 2021. Signed
Slide 7: Financial Highlights
Financial Highlights 7 Underlying EBITDA1 (US$ mn) Categorized by Segments 596 434 1 2017 14 434 Oil and Gas 103 1 5 Power 59 582 429 FY18 Normalized 596 Newly held for sale assets 14 2017 2018 2018 582 Underlying Net Income (US$ mn) Categorized by Segments 2017 127 Oil and Gas 69 127 Power 7 2 (51)
Slide 8: 2019 Guidance
2019 Guidance 8 Gas Gas Daily Maximum Rate Indexed Priced Gas Ophir 150 Liquids Gas TOPQ Fixed Priced Gas • Aceh gas development passed capacity tests. Resumed Yemen 125 125 125 production. 110 15 26% • 2019 guidance 110 mboepd including Ophir. Daily 100 85 85 25 Production Capacity 125 > 85 mboepd.
Slide 9: 2019 Guidance
2019 Guidance 9 Capex, US$ mn Cash Cost/Unit*, US$/boe • 2018 capex US$329 million Power Oil & Gas from drilling, project 400 G&A Lifting Cost 12.3 efficiencies, deferrals and 340 329 110 favorable exchange rates 50 60 4.3 8.8 9.1 8.7 <10 • 2019 pro-forma capex 2.7 4.0 2.9 2~3 US$400 million includi
Slide 10: Debt position
Debt position 10 Debt (US$ mn) • January 2018 USD bond extended average debt maturity to > 4 years. • US$142 million cash in escrow secures maturing 2019 debt 2,808 2,589 2,057 2,215 • Net Debt to EBITDA1 excluding Medco Power 3.3x, consolidated Net Debt to EBITDA1 3.7x below 4.5x at year end 2017.
Slide 11: Delivering On Our Commitments
Delivering On Our Commitments 11 • Rights issue repaid debt Q1 2018. 2019 maturities fully Net Debt to EBITDA° secured in escrow following January 2018 USD bond. ° excl. Medco Power Shareholder approval for 10% private placement. 8.0x 80 • Cash cost maintained <$10/boe. Gross Profit and 1 6.6x EBITD
Slide 12: Sustainable Development
Sustainable Development 12 • The 2018 Sustainability Report presents 2014 – 2017 KPIs and short-medium and medium-long term objectives for continuous improvement. • Engaged with Business for Social Responsibility (BSR) to conduct a materiality assessment and develop KPIs with our stakeholders • Issu
Slide 13: What To Expect
What To Expect 13 • Close Ophir transaction in second quarter • Continued deleveraging and delivery on commitments • Warrants exercised and place pre-emptive rights • Disciplined capital investment with 2019 proforma capex US$400 million • Meet Sustainability commitments • Safe and efficient integra
Slide 14: Significant Player in Three Key Business Segments
Significant Player in Three Key Business Segments 14 Oil & Gas Power Mining • Independent Power Producer (IPP) for 9 • Batu Hijau open pit porphyry copper and • 10 Operated Indonesian assets, 8 producing gold mine, Sumbawa Indonesia Operated Indonesian assets with 645 MW • ~67:33 gas to oil producti
Slide 15: Energy & Natural Resources Company Focused in Indonesia
Energy & Natural Resources Company Focused in Indonesia 15 Block A South Natuna Senoro-Toili Block Batu Hijau Sea Block B Bengara Block Nunukan • MEB • DEB South Sokang Tarakan Block • TM2500 Block • ELB Simenggaris Block International Assets Tunisia Yemen Rimau Block South Sumatra Block Lematang Bl
Slide 16: Creating a Leading E&P player in Southeast Asia
Creating a Leading E&P player in Southeast Asia 16 Exploration potential and development upside Myanmar Tunisia Tanzania Yemen Bangladesh Sinphuhorm Block 12W Malaysia Bualuang South Sokang Block Block A Bengara Block Tarakan Block Libya Mexico Equatorial Oman South Natuna Guinea Sea Block B (Block
Slide 17: Oil and Gas
Oil and Gas 17 YoY Net 2P Reserves, MMBOE Metrics 2017 2018 ∆% Life Index: 10 Years Net Contingent Resources, MMBOE Productionº Gas Oil 490.6 Oil, MBOPD 35.1 32.8 (6.5) Gas, MMSCFD 278.0 279.2 0.4 315.0 281.8 Lifting/Sales Oil Lifting, MBOPD 26.2 26.5 1.0 171.9 144.6 263.4 405.9 Gas Sales, BBTUPD 27
Slide 18: Medco Power Indonesia
Medco Power Indonesia 18 YoY Metricsº 2017 2018 ∆% Gross Installed Capacity, MW Pipeline Projects, MW IPP Sold and O&M Capacity IPP O&M IPP O&M IPP Sold, GWh 2,174 2,704 24.4 2,676 2,819 2,835 O&M Capacity, MW 2,150 2,174 1.1 Average Realized Price* 1,730 526 645 645 IPP, Cent/kwh 3.11 3.99 28.3 °Gr
Slide 19: Amman Mineral Nusa Tenggara
Amman Mineral Nusa Tenggara 19 YoY Copper Gross Reserves & Resources – Gold Gross Reserves & Metricsº 2017 2018 ∆% 2018 (M lbs) Resources – 2018 (k oz) Production Batu Hijau 23,109 34,319 Batu Hijau Copper, M lbs 3,030 3,470 Elang Elang Gold, k oz 2P & Stockpiles 2P & Stockpiles Sales Copper, M lbs
Slide 20: Consolidated Financial performance
Consolidated Financial performance 20 Profit & Loss (US$ mn) 2017 2018 YoY ∆% Balance Sheet (US$ mn) 2017 2018 YoY ∆% Revenue 905.1 1,218.3 34.6 Cash and cash equivalents° 640.8 627.5 (2.1) - Oil and gas 834.6 980.2 17.4 Investments 913.7 978.9 7.1 - Power 67.5 235.9 249.4 Fixed Assets 1,279.5 1,374
Slide 21: Financial performance: excluding Medco Power
Financial performance: excluding Medco Power 21 Profit & Loss (US$ mn) 2017 2018 YoY ∆% Balance Sheet (US$ mn) 2017 2018 YoY ∆% Revenue 837.2 982.4 17.3 Cash and cash equivalents° 556.2 516.3 (7.2) Investments 913.7 978.9 7.1 - Oil and gas 834.6 980.2 17.4 - Others 3.0 2.2 (25.2) Fixed Assets 1,210.
Slide 22: Investor Relations
Company Address : 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 Investor Relations: Email. investor.relations@medcoenergi.com Website : www.medcoenergi.com
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