Medco profit drops 84%

Oil and gas producer PT Medco Energi Internasional Tbk reported net profit of US$9.58 million in the first half 2009, dropped 84% from the same period last year on substantial decline of sales revenue.

Medco posted net sales revenue of US$311 million, slashed 59% from US$762 million in H1 2008, mainly due to the fall of net oil and gas sales to US$227 million and free fall of net sales of chemicals and other petroleum products to US$15 million (against US$125 million).

Medco's cost of goods sold dropped 55%, while operating expenses also declined 24%. As a result, Medco booked operating profit of US$31.3 million against US$195 million in H1 29008.

Medco has total asset of US$2.07 billion as of June 30th, 2009, while its market cap as of today is US$1.1 billion. With annualized EPS of Rp62, Medco is currently traded with PE multiple 54. Expensive! 

READ MORE!!!