PT Medco Energi Internasional Tbk (MEYYY)

Saturday

9:36 AM

ThesisRecent strategic acquisitions and operational efficiencies are expected to enhance production and margins, positioning Medco favorably in a recovering oil market.

Revenue Outlook

Metric	FY2024	FY2025E	FY2026E
Revenue	$2.4B	$2.2B	$2.3B
Rev. Growth	+8.8%	-7.1%	+3.7%
EPS	$1.47	$0.00	$0.00
EPS Growth	-12.5%	-100%	—
P/E	5.0×	—	—

★ Analysts see FY2026 revenue reaching $2.3B — +3.7% growth in a single year.

What’s Driving the Stock

01Medco's recent acquisition of a 30% stake in a major oil field in the Middle East could increase production by 15,000 bbl/day.
02Renewable energy projects are expected to contribute 10% of total revenue by FY27, driven by government incentives.
03Operational efficiency improvements have reduced production costs by 5% YoY, enhancing margins.
04Transition to renewable energy
05Increased demand for energy security in Southeast Asia
06Fluctuations in WTI and Brent crude oil prices
07Changes in production volumes from Indonesian assets
08New project announcements in renewable energy

FY2024 Snapshot

Revenue: $2.4B
Rev. Growth: +8.8%
Gross Margin: 38.9%
Op. Margin: 29.8%
Net Margin: 15.3%
Net Income: $367M
NI Growth: +11.1%
EPS: $1.47
1Y Return: -8.7%

My Notes

"Management emphasized, 'Our strategic investments will drive sustainable growth and profitability in the coming years.'"
Moat: Medco's diversified energy portfolio and established relationships in the region provide a durable competitive advantage.
value - the stock is currently undervalued based on its price-to-earnings and price-to-book ratios.
Rising interest rates can increase financing costs for capital-intensive projects, potentially impacting expansion plans and valuations.
Watch on earnings: WTI crude oil price, Brent crude oil price, Production volumes from key assets.

One Sentence Summary:

The bull case is simple: analysts see revenue climbing from $2.2B to $2.3B as medco's recent acquisition of a 30% stake in a major oil field in the middle east could increase production by 15.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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