Timah?s net profit drops 98%

IDX-listed tin giant PT Timah Tbk saw its net profit in the first-half of this year plunged by 98 percent to Rp 5 billion compared to Rp 334.6 billion in the corresponding period of last year due to weaker price of the commodity and rising production costs, Kontan reported Tuesday.

The paper quoted company Corporate Secretary Agung Nugroho as saying that average selling price during the first six-month of this year fell by 26.37 percent to UUS$17,076 per ton year-on-year. ?Tin price falls because of the weakening global economy,? he said. Meanwhile, cost of revenue jumped by 40.8 percent to Rp 2.9 trillion.

Despite the lower price, tin ore production increased by 0.21 percent to 14,383 tons, while tin metal output jumped by 31.95 percent to 14,261 tons. As a result, sales volume grew by 45.88 percent to 14,096 tons.

Timah said revenue in the first half of this year increased by 16.96 percent to Rp 3.22 trillion year-on-year.

The company hopes tin price to improve going forward following a recent Indonesian government policy to among others curb illegal tin shipment and tighten export procedure. (*)