Energi Mega Persada, an oil and gas company controlled by the Bakrie Group, said earnings climbed by half in the first quarter on rising revenue, boosted by higher energy prices and higher output.
Net income jumped to $4.9 million in the January-March period from $3.3 million in the same quarter a year earlier, the company said.
Revenue more than doubled to $112.9 million from $43.7 million.
Energi Mega chief Imam Agustino attributed the rise in revenue to higher energy prices and increased production.
The company’s oil production was 12,659 barrels per day in the first quarter this year, up from 7,175 bpd in the same period in 2011. Gas production jumped 124 percent to 96.9 million standard cubic feet per day from 43.2 mmscfd last year.
“Our newly acquired 18.73 percent stake in the offshore North West Java PSC block added another 12,000 barrels of oil equivalent per day in the first quarter, representing around 40 percent of our average daily production rate,” Imam said .
He said the average oil and gas selling price increased by 14 percent during the quarter, helping to lift revenue.
The company expects strong earnings this year with the opening of new oil fields, including the Kangean block’s Terang field, which is expected to start this month.
The Terang block has proven reserves of 9.6 million barrels of oil and 1.3 trillion cubic feet of gas.
Energi Mega indirectly owns a 50 percent stake in the field, while two Japanese firms, Mitsubishi and Japex, each control 25 percent.
Energi Mega has already spent 50 percent of its $157 million in capital expenditure for this year.
The company plans to sell $600 million in global bonds this year. It will set the coupon on the upcoming debt sale at 11.5 percent but did not provide any other details on the debt sale. The proceeds will be used to refinance its $460 million debt and bring down its corporate rate burden from 11 percent to 7.5 percent.
Energi Mega’s shares gained 2.1 percent to close at Rp 146 on Monday on the Indonesia Stock Exchange. They are down 22 percent this year.