PT Energi Mega Persada Tbk (ENRG), a prominent player in Indonesia's oil and gas sector, has reported a commendable 10% increase in net profit for the year 2024. This financial uplift underscores the company's strategic initiatives and operational efficiency in a volatile energy market.

Financial Performance in 2024

According to the financial statements released on March 25, 2025, ENRG's net sales reached US$467.43 million by the end of 2024, marking an 11.09% year-on-year growth from US$420.78 million in 2023. This surge in revenue is attributed to increased production and favorable market conditions.​

The net profit for 2024 stood at US$51.27 million, reflecting a 10% increase compared to the previous year's US$45.69 million. This consistent growth highlights ENRG's robust financial health and effective cost management strategies.

Strategic Initiatives Driving Growth

Several strategic moves have contributed to ENRG's impressive financial performance:​

Asset Acquisitions

In March 2024, ENRG completed the acquisition of the Siak and Kampar oil assets in Riau, Sumatra. These assets collectively produce approximately 2,300 barrels of oil per day. The consolidation of these assets into ENRG's portfolio is expected to bolster production figures in subsequent quarters. ​

Production Optimization

ENRG has focused on optimizing production from its core assets, including the Bentu gas asset in Riau, the Kangean gas asset in East Java, the Malacca oil asset in Riau, and the Sengkang gas asset in South Sulawesi. These four assets contribute over 90% of the company's oil and gas production. ​

Capital Expenditure

The company allocated a capital expenditure (capex) of US$150 million for 2024, a 20% increase from the previous year's US$125 million. This capex was primarily directed towards drilling activities aimed at increasing oil and gas reserves. ​

Production Targets and Achievements

ENRG set a target to increase oil and gas production by 10%–15% in 2024, aiming for a daily production of 37,000–38,000 barrels of oil equivalent. By the end of 2024, the company reported a net oil production increase of 2%, from 6,135 barrels per day (bpd) to 6,267 bpd. Net gas production experienced a slight decrease of 3%, from 154 million cubic feet per day (MMSCFD) to 149 MMSCFD.

Financial Metrics and Market Position

ENRG's financial metrics reflect its solid market position:​

• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): Increased by 3% to US$180.53 million in 2024. ​
• Debt Management: The company continues to manage its debt effectively, maintaining a healthy debt-to-equity ratio.​
• Market Valuation: Analysts have noted that ENRG's stock is trading at attractive valuations, with a price-to-earnings (PE) ratio of 5.3x and an enterprise value to EBITDA (EV/EBITDA) ratio of 2.6x. ​

Future Outlook

Looking ahead, ENRG plans to focus on both organic growth through production optimization and inorganic growth via strategic acquisitions. The company is also exploring opportunities in other assets such as Tonga and Gebang in North Sumatra, Korinci Baru in Riau, and Work Area - B in Aceh. ​

The management remains optimistic about sustaining growth momentum, leveraging its strengthened asset base and operational efficiencies to navigate the dynamic energy landscape.