Medco Energi International, the country’s biggest listed oil company, says its profit increased in the first quarter on higher selling prices for oil and gas.
Net income at Medco, the only listed oil company in the local market, rose 23 percent to $12.1 million in the January-March period from a year earlier, the company said in a filing to the Indonesia Stock Exchange on Wednesday.
Revenue climbed 11 percent to $282.2 million.
“The stability in oil production and gas sales, in addition to the realized high-speed diesel sales, resulted in the increase of Medco Energi’s revenue in the first quarter,” the company said in the statement.
The news caused Medco’s stock to rise in Jakarta trading on the Indonesia Stock Exchange. Its shares rose 1.7 percent to Rp 1,820 on Wednesday.
Medco said that its oil and gas production rose 3.9 percent to 66,100 barrels per day. The average selling price of oil rose 17.3 percent to $125 per barrel, while the average selling price of gas increased 4.3 percent.
“So far, the company has demonstrated a stable performance in terms of financials and operations and we are still on track to achieve the company’s target by year end,” Lukman Mahfoedz, president director of Medco Energi, said in the statement.
The company sold Rp 1.5 trillion ($159 million) of five-year, 8.75 percent bonds earlier this month.
Medco Energi will use proceeds from that debt sale to acquire producing oil and gas assets in Indonesia or overseas.
Its overseas targets include buying companies and oilfields in the Middle East and North Africa.
The planned acquisitions will help to boost Medco Energi’s production capacity to 120,000 bpd by 2015 from the 90,000 barrels it is set to produce without the acquisition.
The company’s current production capacity is 80,000 bpd.
Medco Energi’s shares have lost 33 percent this year.