Antam?s Q1 profit plunges on weak nickel prices, rising costs
Friday, May 1 2009 - 01:19 AM WIB
The 87% decrease over the same period last year was attributed to lower sales prices and sales volumes of nickel and bauxite.
During the quarter, Antam?s average selling price of Antam?s nickel decreased inline with international nickel prices as a result of the global economic crisis. Antam?s nickel segment posted a loss in the first quarter of 2009. Antam?s net margin decreased to 3% compared to 32% in the first quarter of 2008.
During the quarter sales rose by 26% to Rp2,642 billion over the same period last year due to increased revenue from gold and silver, which contributed 80 percent of the quarter?s total revenue. Costs of sales, however, rose 143% over to Rp2,479 billion.
Sales of nickel decreased by 60% to 801,939 wmt over 1Q08. High grade nickel ore sales amounted to 554,774 wmt in 1Q09, a 42% decrease over the same period last year, while sales of low grade nickel ore decreased by 76% to 247,165 wmt. Lower sales volume coupled with a 56% decrease in the average selling prices of nickel ore to US$27.89 per wmt lowered nickel ore sales revenue by 78% to Rp259 billion.
Lower nickel demand and sales price also impacted Antam?s ferronickel products. Sales volume of ferronickel decreased by 8% in 1Q09 to 1,161 tonnes nickel contained in ferronickel (TNi). As the average selling price of ferronickel decreased by 63% to US$4.72 per lb., revenue from ferronickel decreased by 58% to Rp137 billion.
Antam?s gold and refinery business segment which includes revenue from gold, silver and refinery services, became the biggest contributor to Antam?s total sales with 84% contribution amounted to Rp2,225 billion. (denny)