{
    "success": true,
    "data": {
        "id": 1713921,
        "msgid": "medco-medc-performance-overshadowed-by-interest-burden-1777711911",
        "date": "2026-05-02 14:45:08",
        "title": "Medco (MEDC) Performance Overshadowed by Interest Burden",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Energy",
        "summary": "PT Medco Energi Internasional Tbk (MEDC) reported a significant surge in net profit for the first quarter of 2026, tripling to US$72.15 million, driven by a 19% increase in revenue to US$668.3 million, though partly supported by non-operational contributions from associates. However, the company's performance is tempered by rising production costs leading to stagnant gross profit and a substantial US$81 million interest expense, reflecting its high debt load of US$5.86 billion against equity of US$2.4 billion. While operational cash flow remains strong at US$272.9 million, cash reserves dipped due to debt repayments, highlighting ongoing financial pressures in the oil and gas sector.",
        "content": "<p>PT Medco Energi Internasional Tbk (MEDC) recorded a surge in\nperformance in the first quarter of 2026. The company\u2019s net profit\nsoared more than threefold to US$72.15 million, from US$20.53 million in\nthe same period last year. This increase aligns with revenue growth of\naround 19% to US$668.3 million, from US$560.4 million. However, behind\nthis profit surge, there are several important notes that investors need\nto consider. Medco\u2019s profit surge is not solely supported by core\nperformance. The company recorded a significant contribution from\nassociates amounting to US$44.55 million, reversing from a loss in the\nprevious period. This means that part of the profit growth comes from\nnon-operational factors, not entirely from the main oil and gas\nbusiness. Even though revenue increased, cost pressures also rose.\nProduction costs, lifting, and crude oil purchases were recorded to have\nrisen significantly. As a result, gross profit remained relatively\nstagnant at around US$231.7 million, only slightly up from last year.\nOne of the main pressures comes from the funding side. Medco\u2019s financial\nexpenses reached US$81 million in the first three months of this year.\nThis figure is one of the factors limiting the optimisation of net\nprofit, while also reflecting the company\u2019s high debt burden. Meanwhile,\nMedco\u2019s total liabilities were recorded to have decreased to US$5.86\nbillion, from US$6 billion at the end of 2025. That debt level is still\nconsidered high, with significant exposure to bank loans and bonds. The\ntotal debt is far larger compared to equity of US$2.4 billion.\nConsequently, interest expenses absorb a significant portion of\noperational profit. Meanwhile, in terms of cash flow, Medco recorded\nsolid operational performance with operating cash flow of US$272.9\nmillion, up from the previous year. However, the cash position actually\ndeclined to US$533.9 million, from US$569 million previously. This\ndecline was triggered by large outflows in financing activities,\nincluding debt repayments and financial costs.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/medco-medc-performance-overshadowed-by-interest-burden-1777711911",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}