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April 8, 2008 |
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MEDCO ENERGI: 2007 Net Profit Drops 82.9% to US$6.5 Million PT Medco Energi Internasional Tbk's 2007 net profit plunged 82.9% to US$6.5 million from US$38.1 million in 2006 despite a 23.9% increase in its income to US$981.9 million, Antara News reports. Medco President Hilmi Panigoro told the news agency that the decrease in net profit was the result of misprojection of gas production from Medco's gas blocks in Mexico Bay (East Cameron and Sorrento Dome). The blocks were supposed to hold gas deposits of 46 billion cubic feet but the gas deposits only reached 31.9 billion cubic feet, he added, Antara relates. According to the report, due to the the misprojection of the production, the company suffered a loss of around US$77.1 million resulting to: -- the sales of Sorrento Dome's assets worth US$20.5 million; -- a decline in the value of East Cameron's assets worth US$25.9 million; and -- depreciation cost worth US$30 million. About Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/ -- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter-Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. A TCR-AP report on Aug. 16, 2006, said that Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). |
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