Vale?s production, revenue higher in Q3
Thursday, October 31 2013 - 03:11 PM WIB
IDX-listed PT Vale Indonesia Tbk, formerly known as PT Inco, produced 3 percent more nickel in matte in the third quarter of the year, than in the second quarter, confirming its 2013 production target of 10 percent more than in 2012.
The firm produced 19,771 metric tons of nickel in matte in the third quarter of the year, compared to 19, 218 metric tons in the second quarter.
It delivered 19,613 metric tons of nickel matte in the third quarter of the year, compared to 20,109 ton in the second quarter.
On a year-to-date basis, both production and sales volumes in 2013 were up by 16 percent. This increased production results in a lower fixed‐cost per unit and improves PT Vale?s cost competitiveness ? even in these challenging market conditions.
Average realized price in the third quarter declined by 11 percent compared to the previous quarter, and accordingly, revenue declined by 13 percent in this same period. EBITDA, which was $10 million lower this quarter, was also impacted by these lower average realized prices.
Revenue in the first nine months of 2013 reached US$721.1 million, up 4 percent from $693.7 million in the same period of 2012 , as deliveries increased by 16 percent offsetting a 10 percent decline in average prices.
Cost of revenue in third quarter decreased by 10 percent and was driven mainly by a 9 percent decline in the costs of fuels and lubricant. This was caused, in large part, by a decreased usage of High Sulphur Fuel Oil (HSFO) as a result of the commissioning of the Coal Conversion Phase 1 project (CCP1) in the mid of third quarter.
Going forward, HSFO consumption should further decrease when CCP1 is in full operation, the company said.
Production and financial highlights
| ? | Third Quarter 2013 | Second Quarter 2013 | Nine Months 2013 | Nine Months 2012 |
| Nickel in matte production? | 19,771 | 19,218 | 57,503 | 49,411 |
| Nickel matte deliveries? | 19,613 | 20,109 | 58,621 | 50,611 |
| Average realized price per metric ton? | 10,981 | 12,297 | 12,301 | 13,706 |
| EBITDA? | 39.4 | 49.3 | 162.7 | 124.3 |
| Revenue? | 215.4 | 247.3 | 721.1 | 693.7 |
| Profit3? | 3.2 | 12.6 | 47.3 | 28.9 |
| Earnings per share? | 0.0003 | 0.0013 | 0.0048 | 0.0029 |
| ? metric ton (t), ? US$, ? US$ million | ||||
Editing by Johannes Simbolon