Medco More Aggressive

Medco Group intensified explore business in oil and gas, mining, and infrastructure since the second half of last year, the business group owned by the tycoon Panigoro family that has spent at least US $ 3.16 billion.

Arifin Panigoro

Most recently, PT Medco Energi Internasional Tbk. (MEDC) to buy a 35% stake in Inpex participation Natuna Limited which manages the South Natuna Block B which is equivalent to the US $ 167 million. 

   Purchases made through PT Medco Power Sentosa that make Medco as the majority shareholder with control of 75% of the shares. The remaining 25% of shares are in the hands of Chevron.

Certainty purchase was delivered directly by Inpex through its official page and MEDC President Director Hilmi Panigoro explanation. The signing of the transactions carried out in Tokyo, Monday (27/3). The process of transfer of shares scheduled to be completed in May 2017. We just signing yesterday. So, there is an additional 35% stake in the South Natuna Block B. [Medco] to 75%, "said Hilmi

the South Natuna Block B

Medco Power Sentosa, which buy shares of Inpex Natuna Limited, was established on November 1, 2016. A total of 99% owned by Medco Energi and the remaining 1% of shares owned by PT Medco Power Abadi Lestari, with total assets of Rp. 550 million.

Page Inpex said after about 40 years of production, earnings and cash flows they are more limited than the block. To optimize the asset portfolio globally, Inpex release all of its shares in Inpex Natuna Limited.

Hilmi Panigoro

Hilmi targets to increase participation rights of ownership could encourage efficient Block B South Natuna. From the range of US $ 13 per Barrel of Oil Equivalent/BOE, he expects production costs down to $ 11 and even below $ 10 per BOE.

Previously, Medco disbursed US $ 2.6 billion for the acquisition of 82.20% stake in PT Newmont Nusa Tenggara (NNT) in June 2016 with funding support from the state-owned banks.

Giving credit worth US $ 360 million which is distributed by PT Bank Mandiri Tbk. Medco to support corporate action today has been entirely withdrawn. "It has drawn full," said Bank Mandiri Corporate Banking SEVP Alexandra Askandar

In addition to loans from Bank Mandiri business group owned by Arifin Panigoro's getting credit from PT Bank Negara Indonesia Tbk. worth US $ 240 million and PT Bank Rakyat Indonesia Tbk. US $ 150 million. In addition to loans for acquisition mine in West Nusa Tenggara, the bank also disbursed loans to Medco for some other projects. There is, but I do not remember the number, "said Alexandra.

Medco corporate action continues in September with a controlled subsidiary of ConocoPhillips holds operator rights and shareholding of 40% participation in Block B South Natuna. The acquisition was worth US $ 240 million. Outside the oil and gas and mining sectors, in January of this year, Medco wins water treatment project in Umbulan, East Java, worth Rp 2.1 trillion, equivalent to US $ 157 million.

SHARE OUTLOOK

Senior Securities Analyst PT Binaanha Parama Reza Priyambada assess the acquisition will provide positive impacts to the stock performance MEDC. Moreover, commodity price projections for this year is relatively better so hopefully can encourage a positive outlook from Medco's future performance.

Reza reveals aggressiveness acquired Medco is quite intense so that there is a problem related to the liability of the company. However, management remains quiet for optimism.

"Liability is quite high, but they are quiet. This means that there is optimism. The Company does not fix DER but to improve their performance, "he said.

Binaartha several times to revise the MEDC stock price forecast of 1,300 to 3,460 range addition to performance enhancements, revisions as well as technical reasons where immediate resistance at that level.

Bisnis Indonesia, Page-1, Wednesday, March 29, 2017

Waiting for the Blessing of Crude Oil

    The performance of oil and gas issuers will get hotter after world crude oil prices continue to break new records, driven by OPEC's decision to cut production by 1.2 million barrels per day. The performance of oil and gas issuers until the third quarter of 2016 was still under pressure.

    Positive performance can only be achieved by PT Medco Energi Internasional Tbk. (MEDC), of the seven oil and gas issuers listed on the Indonesia Stock Exchange. A mining stock analyst from PT Recaptal Securities Kiswoyo Adi Joe assesses the blessing of crude oil prices can be achieved by issuers as early 2017. The skyrocketing crude oil price still needs further scrutiny to project the performance of issuers in Indonesia.

    The Brent oil contract traded at US$54.46 per barrel at the close in London, up 1% from its previous close. Throughout last week, Brent posted its most drastic gain since January 2009 with a 13% increase.

    Drastic strengthening also occurred in New York. The WTI contract traded 1.2% higher to its highest since July 2015 at US$51.68 per barrel. On the other hand, the price of Indonesian crude oil in November fell by US$ 3.39 per barrel from US$ 47.55 in October to US$ 43.25.

    Kiswoyo assessed that the trend of strengthening world crude oil prices would depend on demand. Winter in Europe and other countries are projected to increase demand. If the increase in oil prices persists, it will have a positive impact on the performance of issuers because the sale of oil is not carried out on a contract basis like coal.

    The upward trend will be confirmed when winter is over, but demand is still high. He assesses that oil and gas issuers will succeed if prices stay above US$ 80 per barrel for more than three months. The average cost of producing oil by issuers in Indonesia reaches US$20-US$35 per barrel.

    Senior Market & Technical Analyst at PT Daewoo Securities Indonesia Heldy Arifien assessed that oil and gas companies will still be the choice of market players until the end of this year. The oil and gas sector is projected to remain the prima donna of investors, especially in window dressing.

“We have a projected oil resistance of US$ 58 per barrel to US$60 per barrel. Until the end of the year, the average was US$ 48 per barrel. The oil price euphoria was used by investors for window dressing at least until the first quarter of 2017. Mining sector shares as of Thursday (Dec 1) shot up 73.76% throughout the year, far behind other sectors and the Jakarta Composite Index (JCI) which rose 13,19% (year-to-date).

Bisnis Indonesia, Page-1, Tuesday, Dec 6,2016

MEDC Acquisition of Two Subsidiaries ConocoPhillips Rp 3 Trillion

   It is clear how much money has been spent by PT Medco Energy Tbk (MEDC) to acquire ConocoPhillips Indonesia Inc. Ltd (CIL) and ConocoPhillips Singapore Operations Pte Ltd (CSOP). To take ownership of the two subsidiary companies of ConocoPhillips, Medco spent US $ 239 million. 

   When calculated in rupiah, the total acquisition value reaches more than Rp 3 trillion. This acquisition is divided into two separate transactions. The CIL acquisition value is the US $ 238 million, while the acquisition value of CSOP shares is the US $ 1 million.

    Medco acquisition, through its subsidiary, Medco Natuna. CIL is the beneficial owner of 40% participation of South Natuna Sea Block B (SNSB). Average CSop is a company that operates an onshore receiving facility in Singapore. In addition to getting the operating capability of offshore oil and gas integrated, this acquisition also strengthens our position, "said Fakhrini Nilamsari, Corporate Secretary MEDC. MEDC lately is diligent to make acquisitions.

    Previously, the family-owned issuers Arifin was official holds 50% ownership of PT Amman Mineral lnvestama, which has an 82.2% stake in PT Newmont Nusa Tenggara (NNT) with a value of US $ 2.6 billion acquisition. With the agenda, the automatic need for new sources of funding both to pay off previous debts in order to increase leverage as well as for capital requirements for assets recently acquired increased. In mid-September, MEDC issued bonds worth Rp 125 trillion.

    These bonds are part of the Sustainable Public Offering (PUB) II Phase II to total funds raised the target of Rp 5 trillion. These debt securities are divided into two series, namely Series A of Rp 284.1 billion with a fixed interest rate of 10.8% per annum and a term of three years. Then Series B worth Rp 208 billion with a fixed interest rate of 11.3% and a five-year tenure. Both bonds with a total of Rp 492 billion was secured with full capability (full commitment).

    Then, the remaining bonds amounting to Rp 758 billion will be secured with the best ability (best effort). MEDC will use the bond proceeds to pay down debt and capital expenditures. 60% of funds from the bond will be used to pay off the bonds I Medco in 2013 worth Rp 1.5 trillion. The bonds will mature in March 2018 with a coupon of 8.85%.

Kontan, Page-5, Tuesday, Nov, 22,2016