Medco Energi Internasional tbk PT Shuts Down Ethanol Operations According to BAC Report30 Oct 2013 • by Natalie Aster
LONDON - PT Medco Ethanol Lampung, a subsidiary of Medco Energi Internasional Tbk in Indonesian downstream sector, has reported shut down of its ethanol plant due to unstable raw material supply (cassavas and molasses) that were constantly interrupting ethanol production. The news went live on October 16th.
With this closure PT Medco Ethanol Lampung lost its operations in Indonesian downstream sector except minority ownership in PT Puma Medco Petroleum which engages in diesel trading and distribution. To calculate the financial impact of this shut down, Medco Energi Internasional will have to reclassify subsidiaries’ accounts in its the financial statements.
Medco Energi Internasional showed dramatic profit margin decline in FY 2012. While revenue, gross profit and operating income increased by 11.2%, 12.9% and 18.1% respectively, net income lost 86.1% and equaled USD 12.6 M against USD 90.9 M in 2011. Company’s financial performance in 2013 continues this trend of high revenues and low incomes. For the second quarter ended June 30th revenue comprised USD 207.2 M, gross profit reached USD 103.3 M, operating income equaled USD 63.4 M, net income was only USD 3.3 M. the reason behind these numbers might be slowdown in company’s gas sales.
Founded in 1980 and headquartered in Jakarta (Indonesia), Medco Energi Internasional engages in exploration and production of oil and gas in Indonesia. Company’s operations are international, however overseas gas sales are minor comparing to domestic. Oil lifting and service contracts, on the contrary, bring most of their revenues from international customers. Medco Energi trades in Jakarta Stock Exchange under the ticker MEDC.
Full details on the company’s business, operations, business possibilities, news and competitors can be found in the report “Medco Energi Internasional tbk PT Fundamental Company Report Including Financial, SWOT, Enhanced SWOT, PESTEL, Porter Five Forces, VRIO, Competitors and Industry Analysis” recently published by Market Publishers Ltd.
Title: Medco Energi Internasional tbk PT Fundamental Company Report Including Financial, SWOT, Enhanced SWOT, PESTEL, Porter Five Forces, VRIO, Competitors and Industry Analysis
Date: Oct, 2013
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