Mandiri Sekuritas Medco Energi: 1H10 net profit up 26.2% yoy, inline with expectation (MEDC, Rp3,050, Buy, TP: Rp3,500)

MEDC’s 1H10 revenue grew 27.7% yoy to US$397mn, due to the increasing hydrocarbon lifting and sales by 3.6% yoy to 55.49mboepd and strengthening average realized selling price of crude oil by 46.7% yoy (to US$80.5/bbl), as well as gas price by 15.6% yoy (to US$3.6/mmbtu). This also resulted into better margins. 1H10 revenue reflects around 55.7% of our estimates and 40.8% of consensus’, which is inline with our expectation. MEDC is currently trading at EV/2P reserves of US$3.8/boe.