Medco Energi Internasional (MEDC) expects that its overseas oil operations, including those in Tunisia and Libya, will be able to boost the company’s sluggish earnings.
According to its financial statement, Medco posted US$198.83 million in gross profits as of September this year, a 25.34 percent decrease from $249.23 million in the same period last year.
The company’s net profits decreased by 5.26 percent to $9.5 million from January to September this year, compared to $10 million in the same period last year.
“This performance result has yet to show a positive contribution from our asset in Tunisia, which will start operation in October this year,” Medco president director and CEO Lukman Mahfoedz said in a press statement on Wednesday.
He added that the company, along with Chinook Energy Inc., has completed the acquisition process for a 100 percent stake in Storm Ventures International (Barbados) Ltd. (SVI) from Storm Ventures International (BVI) Ltd., a subsidiary of Toronto-listed Chinook.
SVI owns four exploration blocks, two development blocks and two producing blocks with working contracts of either 30 or 50 years in Tunisia. The $114.03 million acquisition now makes Medco the shareholder of a company owning eight participation interests in eight oil and gas blocks in the country.
Lukman said previously that the acquisition marked his company’s comeback in Tunisia. In 2011, Medco decided to divest its stake in the Anaguid area in Tunisia.
