Medco 1Q net profit up 15% on higher oil output

Medco 1Q net profit up 15% on higher oil output

JAKARTA (JP): Publicly listed oil and gas company PT Medco
Energi Internasional said on Monday its first quarter net profit
rose to Rp 187 billion (about US$16.45 million) up 15 percent
compared to Rp 163 billion in the first quarter of last year,
citing a more than 20 percent increase in oil production and
favorable crude oil prices.

Medco president John S.Karamoy said its first quarter revenue
increased by 58 percent to Rp 818 billion from Rp 518 billion
during the same period last year.

"Revenue increase in the first quarter of 2001 was due to a
continued increase of more than 20 percent in average oil
production to 73,800 barrels of oil per day (bpd) from 60,900 bpd
in the first quarter of 2000," he said, during the company's
annual shareholders meeting.

John attributed the increase in oil production to the
development of new oil fields, among others, in its contract
areas in Rimau, South Sumatra, Sangasanga and Tarakan, East
Kalimantan.

Combined with the expansion of production and pipeline
facilities, the new fields have contributed a 40 percent increase
to its levels of oil production, Medco said.

Last year, Medco also acquired three new working areas in
Simenggaris, East Kalimantan; Western Madura, Madura Island;
Senoro and Toili, Central Sulawesi.

Next to the increase in oil output, he said, Medco expected
gas production to grow by 21 percent to some 80 million cubic
feet per day (mmcfd), compared to 66 mmcfd last year.

Medco had said earlier that boosting oil and gas output would
allow the company to benefit from the current surge in demand.

Last year, oil and gas production accounted for about 82
percent of Medco's total revenue, compared to 66 percent the year
before. The company derived other income from drilling services.

John said he planned to spend around $125 million raising
Medco's oil and gas output. Of that amount, $95 million would be
allotted for boosting production in existing fields. The
remaining $30 million would be earmarked for exploration
expenses.

For this year, the company aimed at doubling its exploration
activities from last year, as it targets 16 exploration wells,
815 kilometers of 2D seismic and 120 square kilometers of 3D
seismic activities.

According to John, the company also planned to produce some
100,000 barrels of liquefied petroleum gas (LPG) per day at its
Rimau contract area.

We plan to utilize flare gas to build the LPG facility, which
is slated for completion in mid-2002," he said.

Highlighting last year's performance, Medco said it had
achieved a record average daily oil production level of 66,800
bpd, 62 percent higher than the average output just a year
earlier.

Despite the higher oil output, reserves have remained at 180
million barrels of oil (mmbo).

Average sales of natural gas fell slightly to 65.9 million
cubic feet per day mainly as repair works at Medco's Bunyu
Methanol Plant have lowered demand.

The repair work has also lowered methanol production and sales
of 146,101 metric tons and 144,452 tons respectively.

Medco's shareholders meeting approved a management plan to buy
back the company's shares at the maximum value of Rp 265 billion
within the next 18 months.

Shareholders also agreed to pay out dividends worth Rp 277
billion, or Rp 85 a share.

Medco is the largest Indonesian owned oil and gas company
after state-owned oil and gas company Pertamina.

Medco's exploration and production activities are conducted by
wholly-owned subsidiary PT Exspan Nusantara, now the owner of 10
operating contracts with Pertamina.

Apart from Indonesia, Medco also has working interests in two
other exploration contracts located in Myanmar. (bkm)