JAKARTA. Pemeringkat Efek Indonesia (Pefindo), a local rating agency, has raised the rating of PT Medco Energi Internasional Tbk (MEDC) to “idAA-“, following the full consolidation of the Corridor Block PSC in South Sumatra and oil price increase.
Said rating is also given to securities issued by MEDC. Currently, MEDC has three active securities, including Senior Bond IV, Senior Bond III, and Senior Bond II.
In its official announcement, Pefindo showed optimism in the consolidation of the Corridor Block PSC. Pefindo believed that it could solidify MEDC’s assets portfolio “through the additional annual production of 60-70 million barrels of oil equivalent per day (MBOEPD).”
Pefindo explained that the “idAA-“ rating reflects the diversified assets of MEDC, which is the oil and gas company with the higest capitalisation in Indonesia. However, this level is still restrained due to its moderate financial profile.
However, the rating is possible to be increased even more if MEDC took some deleveraging process in order to repair its financial profile conservatively. On the contrary, the rating may also slip down should the company’s debts keep piling up without any strategy to reinforce its business profile.
Currently, 82.4% of MEDC’s revenue comes from the oil and gas business. Then, the electric power plant generates 9.2% of the revenue, followed by the trading activities of 7.2% and other business lines of 1.1%.
As of December 31, 2021, PT Medco Daya Abadi Lestari is listed as the controller of 51.88% of MEDC’s shares. Then, Diamond Bridge Pte Ltd owns another 21.62%, followed by PT Medco Duta of 0.12%, PT Multifabrindo Gemilang of 0.03%, the management of 0.68%, and public investors of 25.67%. (KR/ZH)