PT Vale reports Q2 output up 30%, sales volumes 33%
Friday, August 16 2013 - 12:49 AM WIB
IDX-listed PT Vale Indonesia Tbk (INCO) delivered 6 percent more of nickel in matte in the second quarter of this year than in the first quarter supported by higher production volume, which increased from 18,514 metric tons in the first quarter to 19,218 tons in the second quarter.
The company said in a statement Thursday that on a year on year basis, both production and sales volumes in the second quarter of this year were up by 30 percent and 33 percent, respectively. These increases are due to PT Vale?s new production capacity, and the company reiterates its 2013 target of 10 percent increase in production.
Average realized price in the second quarter of 2013 was US$12,297 per ton, or about 10 percent lower than realized price made in the first quarter. The 10 percent decline in realized price was partially offset by the 6 percent increase in delivery volumes and resulted in a 4 percent decline in revenue in the second quarter as compared to the first quarter.
Revenue in the first six months of 2013 was 19 percent higher than revenue in the same period of 2012 as deliveries increased by 33 percent which was partially offset by a10 percent decrease in average realized price. Cost of revenue in the second quarter increased by 6 percent, which is in line with the increase in deliveries outlined above.
Fuels and lubricants cost in the second quarter increased by 8 percent as the tompany consumed 679,306 barrels of High Sulphur Fuel Oil (HSFO) at an average cost of US$100.76 per barrel compared to 607,539 barrels at an average cost of US$103.05 per barrel in the previous quarter. The company also consumed 14,732 kilolitres of diesel fuel at an average cost ofUS$0.85 per litre while in 1Q13 it consumed 14,433 kilolitres with the same average cost.
That HSFO consumption should decrease significantly now that the Coal Conversion Phase 1 project (CCP1) has been completed, PT Vale said. ?This project will convert our dryers to use coal rather than HSFO which will bring significant cost savings to the company. With the volatile nickel price situation, it is crucial for the company to manage its cost carefully,? it added.
Editing by Reiner Simanjuntak