JAKARTA. PT Medco Energi Internasional Tbk (MEDC) booked significant downturn of its net profit, reaching 60.58% year-on-year (yoy), due to several factors, including low contribution of profit of PT Amman Mineral Internasional Tbk (AMMN) and low realisation price of oil and gas.

In the first half of 2023, this mining and energy company recorded near zero growth in revenue, only climbing 0.68% yoy to USD 1.11 billion from USD 1.10 billion. On the contrary, its cost of revenue swelled notably to USD 646.17 million from USD 488.15 million in H1 2022.

Therefore, the gross profit was down to USD 470.03 million from the previous USD 620.46 million, resulting in current year’s profit attributable to the parent entity that dropped 60.58% yoy, from USD 303.05 million to USD 119.46 million.

The management then admitted that the poor performance in the first half of 2023, compared to the same period last year, is due to smaller contribution made by PT Amman Mineral Internasional Tbk (AMMN), as well as low oil and gas price realisation, albeit balanced out by high oil and gas sales volume, as explained by Roberto Lorato, CEO of Medco, in an official statement today (3/10).

Lorato further said that the portion of AMMN in Medco Energi’s net profit sank to USD 27 million, a USD 103 million difference compared to the first half of 2022. It is due to the postponement of copper and gold sales for four months following late obtainment of export license. (AM/ZH)