Medco records 43.2% rise in net income on surge in oil prices
Medco records 43.2% rise in net income on surge in oil prices
The Jakarta Post, Jakarta
The country's biggest upstream oil and gas exploration company PT
Medco Energi Internasional reported a 43.2 percent increase in
net income in the first nine months of the year to US$68.44
million, up from $47.78 million in the corresponding period last
year.
In a release disseminated to the press over the weekend, the
company said net revenues also soared by 12.7 percent to $442.21
million during the first three quarters, compared to $392.55
million in the same period in 2004, due to the increase in global
crude oil prices, profits from joint ventures and revenues from
other contracts.
The company, however, also reported a decline in oil
exploration and production, as well as in natural gas sales.
Average daily oil output declined to 54,600 barrels per day
(bpd) in the first nine month of the year from 57,290 bpd in the
same period last year.
Meanwhile, the company's natural gas sales over the first nine
months dropped by 33.9 percent to 135.8 million cubic feet per
day (mmcfd), compared to 205.5 mmcfd during the same period last
year.
Medco did not give any reasons for the decreases in oil
production and gas sales.
Medco's cost of sales in the first nine months also decreased
by 11.9 percent to $193.84 million from $219.9 million in the
corresponding period last year due to lower exploration expenses
as well as depreciation and amortization expenses for oil and gas
assets due to the sales of ex-Novus assets and the Asahan block.
The company said that its main objective for the rest of the
year would be to add to reserves and production through the
exploration and development of recently acquired blocks.
On Oct. 5, the company, through its wholly owned subsidiary
Medco Far East Limited, acquired 100 percent of the shares of
Perkasa Equatorial Sembakung Ltd in East Kalimantan. The
Sembakung block had proven oil reserves of 12.6 million barrels
as of January 2005.