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 Medco to support corporate action today has been entirely withdrawn.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