PT Medco Energi Internasional Tbk

For first half 2026, revenue was $1.4 billion, up 23.4%; EBITDA was $805.1 million, up 30.7%; and net income was $275.3 million versus $30.7 million a year ago. EBITDA margin improved from 53.7% to 56.9%, while cash cost was $8.4 per boe, versus $8.0 per boe in the prior comparison cited by CFO. Production reached 170,100 boe/d, up 19% year over year, and power sales rose 16.5% to 2,323 GWh. On the balance sheet, restricted group net debt was $2.1 billion and restricted group net debt/EBITDA improved to 1.4x from 2.0x at end-2025; operating cash flow was $514.7 million. For 2026, management reaffirmed production guidance at around 165,000 to 170,000 boe/d, kept cash cost guidance below $10/boe, and raised oil and gas CapEx guidance to $450 million-$475 million while power CapEx was raised to as much as $50 million.

Ronald Gunawan framed the call around continuity in strategy despite the new management team, emphasizing the same priorities of operational excellence, disciplined production and cost management, capital allocation, liquidity, and sustainable growth. He highlighted Medco’s diversified portfolio across oil and gas, power, and AMMN, and said the company is focused on value-accretive growth rather than growth for its own sake. His tone was confident and steady, stressing that the first half showed strong execution, balance sheet strength, and a proven acquisition track record.

Benny Setiawan said the first half delivered operating leverage: revenue rose 23.4% to $1.4 billion, EBITDA rose 30.7% to $805.1 million, and net income reached $275.3 million. He pointed to operating cash flow of $514.7 million, cash and cash equivalents of $1.4 billion, and restricted group net debt/EBITDA of 1.4x, or 1.9x at mid-cycle $65/bbl pricing, with fixed charge coverage at 5.6x versus a 3x floor. He also explained that gross debt rose to $4.1 billion due to facility drawdowns and that the company completed a $200 million tap of its 2030 senior notes, while CapEx guidance was lifted to accelerate Sakakemang and Batam.

Analysts focused on whether Medco is preparing to do an acquisition, and management said it cannot comment on any specific deal but continues to evaluate assets using the same criteria: sizable, high-margin producing assets with synergies, clear subsurface understanding, and supportive fiscal/regulatory frameworks. Another recurring topic was why first-half results were audited; Benny said it was done to give flexibility for potential future corporate actions, with no specific disclosure today. On production guidance, Amri said the company is reaffirming rather than raising the range because second-half maintenance and expected declines offset the strong first-half contribution from Forel, Terubuk, Corridor, and Senoro Phase 2A.