Timah?s net profit jumps five-fold
Friday, November 3 2017 - 01:12 AM WIB
IDX-listed tin mining firm PT Timah Tbk said consolidated net profit in the nine‐month period of this year totaled Rp 300.6 billion, which increased twice from the first semester of 2017 and has increased 5 times when compared with the same period in 2016.
Timah said in a statement on Thursday revenues reached Rp6.6 trillion, which increased by Rp2.0 trillion from the same period in 2016. ?This increase in revenue was driven by demand increase for tin metal for electronic goods, one of which was in China,? the company said in a statement.
As of end September 2017, the company's volume of refined tin sales increased by 16.1 percent to 21,588 Mton from 18,600 Mton in the same period in 2016. In addition, the average selling price as of September 30th 2017 increased to $20,557/Mton from previous $17,296/Mton in the same period of 2016 is also one of the driving factors towards company's revenue increase.
Cost of revenue increased by 37.2 percent due to several factors, including the increase in raw material of tin ore cost because tin‐ore production increased to 23,854 ton from previous 15,973 ton in the same period of 2016.
As of 30th September 2017, the company recorded tin‐raw material cost of Rp3.5 trillion, increase of Rp1.8 trillion from the same period in 2016 amounted Rp1.6 trillion. In addition, the increase in royalty payments in line with the increase of the company?s revenue is also a factor in the increase of the company?s cost of revenue.
EBITDA increased of 65.8 percent to Rp1.0 trillion from Rp618.5 billion in the same period of 2016. The increase was in line with the improvement of the average selling price of refined tin in the 3rd quarter of 2017, as well as the increase of refined tin sales volume and efficiency policy which is continuously conducted.
As of September 2017, the company's total capital expenditures amounted to Rp539.9 billion. From the total capital expenditure, the company has variously allocated for capacity enlargement, production support facilities, reconditioning and replacement, also for other operational needs.
"As of September 30th 2017, the Company improved its positive performance by increasing its refined tin sales volume by 49.9% compared to the first half of 2017 and increasing by 16.1% compared to the same period of 2016. By continuously improving the operational performance, as well as conducting efficiency efforts, we expect to achieve maximum results by the end of 2017," said Timah Corporate Secretary Amin Haris Sugiarto.
Editing by Reiner Simanjuntak