Vale Indonesia reports stronger third quarter results
Saturday, November 1 2014 - 04:15 AM WIB
IDX-listed nickel miner PT Vale Indonesia Tbk reported Friday stronger unaudited financial results in the third quarter and first nine months of this year thanks to stable production and higher price.
The company said in a statement that income for the period rose to US$62.4 million, a 25 percent increase over the previous quarter. This is also the highest quarterly income since the fourth quarter of 2011.
?The company?s performance in 3Q14 was characterized by continued strong production, a higher selling price of nickel and a lower unit cost of revenue,? the statement said.
PT Vale said production and sales volumes for both 3Q14 and the first nine months of 2014 (9M14) were relatively stable when compared to production and sales for 2Q14 and 9M13 respectively.
Nickel in matte production in 3Q14 of 19,313 metric tons, however, is a slight 2.32 percent decline when compared to 19,771 tons in 3Q13, according to calculation by this portal. But thanks to higher average realized price during the quarter, revenue on a year-on-year basis was higher in 3Q14.
PT Vale said in 3Q14 and the first nine months of 2014 the company realized a higher average selling price of 6 percent and 7 percent respectively compared to 2Q14 and 9M13. This resulted in higher revenues for 3Q14 and 9M14 of 8 percent and 7 percent respectively when compared to revenues for 2Q14 and 9M13.
On a year to date basis, the cost of revenue for the first nine months of 2014 declined 11 percent over the same period in 2013, driven by lower fuel, lubricant and employee costs. ?This reflects continuous improvement in cost discipline and operating productivity by PT Vale, and highlights the success of the company?s cost reduction strategy,? the company said. A major component of this strategy is the company?s coal conversion phase 1 project (CCP1), which replaces high sulfur fuel oil (HSFO) with coal in the ore dryers. This conversion results in a significant cost reduction.
PT Vale said cost of revenue in 3Q14 increased by less than 1 percent to $181.2 million from $180.1 million in 2Q14. Factoring in a sales volume increase of 1 percent, the cost of revenue on a unit basis was slightly lower in 3Q14.
The company said cash and cash equivalent as of September 30, 2014 and June 30, 2014 were $372.4 million and $293.4 million respectively. During the quarter, the company disbursed approximately $19.7 million in capital expenditures.
| 3Q14 | 2Q14 | 9M14 | 9M13 | |
| Nickel in matte production (metric ton) | 19,313 | 19,224 | 58,141 | 57,503 |
| Nickel matte deliveries (metric ton) | 19,830 | 19,614 | 58,867 | 58,621 |
| Average relized price per metric ton (US$) | 14,616 | 13,733 | 13,119 | 12,301 |
| EBITDA (US$ million) | 124.4 | 106.8 | 280.5 | 162.7 |
| Revenue (US$ million) | 289.8 | 269.4 | 772.3 | 721.1 |
| Earnings (US$ million) | 62.4 | 50.0 | 130.4 | 47.3 |
| Earnings per share(US$) | 0.0063 | 0.0050 | 0.0131 | 0.0048 |
Editing by Reiner Simanjuntak