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Medco Energi will do several other things after acquiring Ophir Energy

16 August 2019 09:28

JAKARTA. After PT Medco Energi Internasional Tbk (MEDC) officially acquired Ophir Energy Plc in May 2019, the next steps are to complete the purchase, delist the company's shares and pay priority debt of US$ 355 million.

In addition, MEDC will also change the status of Ophir Energy Plc & Salamander Plc, a UK-based energy company, to Ltd.

Ophir's acquisition is claimed to be able to add value through increasing the scale, control, and competence of the organization which resulted in better efficiency, diversification, and access to growth opportunities.

In the first semester of 2019, MEDC's consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) was recorded at US$ 343 million, while Ophir's pro forma EBITDA was US$ 450 million. Net profit from the oil, gas and electricity segment was US$ 136 million. Consolidated net profit was recorded at US$ 28 million, while Ophir's pro forma net profit was recorded at US$ 41 million.

MEDC also targets the realization of continuous synergies of US$ 30 million per year, by reducing the lease of headquarters in London and carrying out the process of integrating systems and organizations. The integration is targeted to begin in 2020.

Furthermore, MEDC also plans to develop Ophir's portfolio, starting from efficiently integrating operations in the Southeast Asia region, carrying out the Bualuang & Meliwis development project, and rationalizing the exploration portfolio. (AM/AR)

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