PT Medco Energi Internasional (Medco) reported a sharp decline in net profit for the first quarter (Q1) of 2025, down nearly 75.23 percent year-on-year to US$18 million (Rp 293.32 billion), from US$72.66 million in the same period last year. The figure also marks a significant drop from the US$94.08 million profit posted in the fourth quarter of 2024.

In a statement released on Friday, May 30, 2025, Medco CEO Roberto Lorato attributed the downturn to losses incurred by subsidiary PT Amman Mineral Internasional during the commissioning phase of its new copper smelter.

“Net income of US$18 million was lower than in Q4 2024, primarily due to a net loss from Amman Mineral during the commissioning of the new smelter,” Lorato said.

Amman Mineral produced 37 million pounds (Mlbs) of copper and 32 thousand ounces (Koz) of gold in Q1 2025. The company achieved first cathode copper production during the quarter, with exports commencing in early April. Commissioning of the precious metals refining facility is slated for Q2 2025.

In the oil and gas segment, Medco recorded a production volume of 143 thousand barrels of oil equivalent per day (mboepd), impacted by seasonal gas demand decline and scheduled maintenance at the Senoro field. The company reported a cash production cost of US$8.4 per barrels oil equivalent.

Lorato noted that production had commenced at the Terubuk and Forel fields in South Natuna Sea Block B, both of which were inaugurated by then President Joko Widodo. Combined, the fields are expected to yield up to 20,000 barrels of oil per day (BOPD) and 60 million standard cubic feet per day (MMSCFD) of gas.

In the power sector, Medco sold 871 gigawatt-hours (GWh) of electricity in Q1 2025, a decrease from 1,146 GWh in Q4 2024. The drop was attributed to maintenance at the Riau gas power plant (PLTGU), an earthquake near the Sarulla geothermal facility, and flooding at the Sumbawa solar plant.

"These short-term disruptions were partially offset by the commissioning of the 35 MW Phase 1 Ijen Geothermal project in February," Lorato cited.

He added that construction of the 25 MWp East Bali Solar Power Plant (PLTS Bali Timur) has been completed, with commercial operations targeted for June. Preparations for exploration drilling in the Bonjol geothermal working area are also underway.

EBITDA

Despite the profit dip, Lorato said the company maintained a solid financial performance. Medco recorded Earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$332 million in Q1 2025, an increase from Q4 2024, supported by proactive cost management. The company realized an average oil price of US$72 per barrel and a steady gas price of US$7 per mmbtu.

“Our first-quarter performance reflects Medco Energi’s financial discipline, operational resilience, and commitment to sustainable growth,” Medco President Director, Hilmi Panigoro, said.

The company aims to produce 145,000–150,000 boepd of oil and gas in 2025 at a cost below US$10 per boe, with a power sales target of 4,500 GWh. Capital expenditure for oil and gas is set at US$400 million, and US$30 million for the power segment.

As of Q1 2025, Medco had spent US$89 million (Rp 1.45 trillion) in capital expenditure, mainly allocated to drilling activities in Oman Block 60, development in South Natuna Sea Block B and the Corridor Block, as well as finalizing the Ijen geothermal project and the Bali Timur solar plant under Medco Power.