JAKARTA (Yosefari) – PT Medco Energi Internasional Tbk (MEDC) allocates capex of US$500 million for next year, funded by loan and internal cash, and mostly to fund its gas project in Senoro, Central Sulawesi.

The company has secured loan of US$260 million from Bank Mandiri and Standard Chartered Bank. Senoro project is targeted to produce gas by end 2014, with capacity of 250 mmscfd.

MEDC reported a 47% drop in net profit in first 9 months to September of this year due to higher cost. It booked net profit of US$13.29 million, compared to US$25.15 million in the same period of last year.

Sales and revenue totaled US$652.24 million, lower than previous US$659.81 million. Sales of oil and gas declined to US$615.16 million from US$643.54 million a year earlier.

In addition, cost of goods sold and other direct costs also increased to US$375.78 million from previous US$347.97 million.

MEDC’s assets totaled US$2.58 billion while liability amounted US$1.68 billion. The company has cash and cash equivalent of US$386.77 million.