Vale Indonesia reports 179% jump in earnings on higher price
Friday, July 25 2014 - 03:42 AM WIB
IDX-listed nickel mining giant PT Vale Indonesia Tbk said Thursday that earnings in the second quarter of this year jumped by 179 percent to US$50 million compared to the earnings in the first quarter, thanks primarily to higher price of the commodity.
The company said in a statement that nickel in matte production during the second quarter declined slightly to 19,224 metric tons compared to the output in the first quarter, revenue during the quarter increased by 26 percent as the average realized price increased significantly to US$13,733 per ton from $10,972 per ton.
Nickel price received a boost among others due to the mineral ores export ban policy introduced by the government of Indonesia on January 12 of this year.
Vale said that production in the first six month of 2014 was 3 percent higher than production in the same first-half period of 2013.
However, the average realized nickel price achieved in the first half of 2014 was 5 percent lower than average realized price in the first half of 2013, resulting in a 5 percent decline in revenue, it said.
Elsewhere, the company said it continued to realize improved cost discipline and productivity in its operation as a result of the focus on our cost reduction strategy. ?Our cost of revenue? excluding inventory movements ? in 2Q14 increased by only 1 percent to US$178.6 million from US$176.7 million in 1Q14,? it said.
In 2014, PT Vale said it will retain its focus on improving costs and will
continue to leverage its enhanced smelting capacity and process optimization and plans to produce 5 percent more nickel in matte in 2014 than in 2013, at around 79,600 tons.
| 2Q14 | 1Q14 | 1H14 | 1H13 | |
| Nickel in matte production (metric tons (t)) | 19,224 | 19,604 | 38,828 | 37,732 |
| Nickel matte deliveries (metric tons (t)) | 19,614 | 19,423 | 39,037 | 39,008 |
| Average realized price per metric ton (US$) | 13,733 | 10,972 | 12,360 | 12,964 |
| EBITDA (US$ million) | 106.8 | 49.3 | 156.1 | 123.3 |
| Revenue (US$ million) | 269.4 | 213.1 | 482.5 | 505.7 |
| Earnings (US$ million) | 50.0 | 18.0 | 68.0 4 | 4.1 |
| Earnings per share (US$) | 0.0050 | 0.0018 | 0.0068 | 0.0044 |
Editing by Reiner Simanjuntak