Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Credit

Medco Energi’s FY 2018 results were healthy. The gross margin continued to expand, supported by higher energy prices and lower costs due to the IDR's depreciation. Earnings growth outpaced that of debt, with Debt/EBITDA decreasing to 4.8x as a result (FYE 2017: 5.8x). We note that Medco's credit profile has improved meaningfully since the initial Notes issuance in 2017, supported by earnings growth and deleveraging actions. We expect FCF to remain negative over the near term, on account of the high capex. That said, we view positively the company’s plans to reduce debt through external funding sources. These include: [1] a possible IPO of its mining subsidiary; [2] the potential sale of its property asset in Jakarta; [3] USD 190 mn from the conversion of warrants; and [4] USD 100 mn from a private share placement.

   Medco Energi’s FY 2018 results were healthy. The gross margin continued to expand, supported by higher energy prices and lower costs due to the IDR's depreciation. Earnings growth outpaced that of debt, with Debt/EBITDA decreasing to 4.8x as a result (FYE 2017: 5.8x).    We note that Medco's credit profile has improved meaningfully since the initial Notes issuance in 2017, supported by earnings growth and deleveraging actions. We expect FCF to remain negative over the near term, on account of the high capex. That said, we view positively the company’s plans to reduce debt through external funding sources. These include: [1] a possible IPO of its mining subsidiary; [2] the potential sale of its property asset in Jakarta; [3] USD 190 mn from the conversion of warrants; and [4] USD 100 mn from a private share placement. 

Medco Energi - Earnings Flash - FY 2018 Results - Lucror Analytics