Indonesia's Medco Energi 2006 net profit down 49 pct on cost increases
JAKARTA (XFN-ASIA) - PT Medco Energi Internasional said its 2006 net profit
dropped 49 pct year-on-year to 38.1 mln usd from 74.7 mln due to cost increases.
It said its sales rose 28 pct year-on-year to 792.4 mln usd supported by
higher oil and gas prices.
Medco said its average oil price increased to 63.98 usd bpd in 2006 from 53.68
usd in 2005, while the average gas price appreciated to 2.79 usd per mmbtu
(million British thermal units) from 2.45 usd per mmbtu in 2005.
In addition to higher oil and gas prices, the contribution from its drilling
services to its revenue also jumped to 148.1 mln usd in 2006 from 105 mln a
year before, it said.
However, Medco's operating profit fell sharply to 180.0 mln usd from 239. 3
mln due to increases in production costs, drilling operation costs, and
exploration expenses.
It said another big expense was the loss borne by its unit Medco E&P Brantas
amounting to 61.7 mln usd due to the decrease in asset value, provision of cash
call expenses, and depletion of the asset itself, as a result of the Lapindo
mud incident.
Medco has recently reached a deal to sell Medco E&P Brantas to PT Prakarsa
Cipta Abadi and PT Prakarsa Cipta Selaras for 100 usd.
Medco Brantas holds a 32 pct interest in the Brantas gas block. A gas well in
the block located in Porong, East Java, has been spewing out mud since last May
that has inundated neighboring villages and farmland.
The block is operated by Lapindo Brantas Inc, which owns a 50 pct working
interest in the block. The remaining 18 pct interest is held by Australia's
Santos Brantas Pty Ltd.
Commenting on business prospects for this year, Medco said it is optimistic
its financial performance will improve as it will continue to seize
opportunities for business growth domestically and internationally.
It said before the end of this year, it will begin operations of its
multi-feedstock bio ethanol production facility in Lampung, the largest in
Indonesia to date.
It also earmarked 400 mln usd capital expenditure for 2007.
(1 usd = 9,091 rupiah)
[EMAIL PROTECTED]
ab/kmq xfnab/xfnkm MMMM JWB57-18Apr07 11:50 GMT
---------------------------------
Ahhh...imagining that irresistible "new car" smell?
Check outnew cars at Yahoo! Autos.
