Medco's profits soar on higher oil and gas prices
Medco's profits soar on higher oil and gas prices
Rendi A. Witular, The Jakarta Post, Jakarta
Energy company PT Medco International's first semester net
profit soared by 20 percent on higher international oil and gas
prices.
In a statement released on Wednesday, Medco said that it had
recorded a rise in first-half profit to US$52.7 million or 1.7
U.S. cents per share, from $44.6 million or 1.3 cents in the same
period last year.
Sales revenue increased by 9 percent to $227 million from $207
million. Net revenues from its subsidiaries also rose by 18
percent to $52.7 million from $43.9 million.
However, the company booked a foreign exchange loss of
$798,630 in the first half of the year, compared with a gain of
$2.51 million a year ago.
Mining sector analyst Norico Gaman from BNI Securities said
that he had predicted that Medco would book higher first-half
profit because, over the period, the company had enjoyed higher
oil and gas prices due to the Iraq war.
"The company managed to take full advantage of the rising
price of oil by increasing its oil output to around 90,000 to
95,000 barrels per day (bpd) from around 88,000 bpd in the first
semester last year," said Norico.
On average, oil prices stood higher at around $30 to $35 per
barrel in the first half of the year, compared with $20 to $25 in
the same period last year.
The price climbed due to fear of possible supply disturbance
caused by the U.S.-led invasion of Iraq and the war's impact on
the global economy.
Norico forecast that even if the price of oil were lower in
the second semester, Medco would still book higher sales and net
profit by year-end due to its higher oil and gas output.
He predicted that Medco's net profit in fiscal year 2003 would
increase to $92.5 million from $84.1 million in 2002.
Medco, which was founded by businessman-turned-politician
Arifin Panigoro, issued seven-year bonds worth $250 million
globally in June this year to fund expansion.
The company submitted bids last month to buy four oil
exploration areas in the country from ConocoPhilips.