PT Vale reports strong Net Profit in 1Q23
Jakarta, April 26, 2023 - PT Vale Indonesia Tbk ("PT Vale" or the "Company", IDX Ticker: INCO) and its subsidiaries (jointly the "Group") today announced unaudited results for the first quarter of 2023 ("1Q23"). As reported last week, the Company's nickel in matte production in 1Q23 was 21% higher than the same period last year on the back of successful completion of the Furnace 4 rebuild last year.
"In the 1Q23, we saw further favourable nickel prices that contributed to a strong Net Profit of US$98.1 million, a 207% increase compared to the previous quarter. Lower energy commodity prices added to tailwinds but have not diminished our resolve to find further improvements in all aspects of the business," said Febriany Eddy, CEO and President Director of the Company.
The Group average realized price in 1Q23 was 18% higher than last quarter, resulting in 19% higher Revenue in 1Q23 compared to the last quarter. The Group Cost of Revenue fell 9% from US$251.2 million in 4Q22 to US$228.2 million in 1Q23. In addition to the positive contribution from lower commodity prices, the lower cost was also driven by disciplined cost management and continuous productivity improvements.
The following table provides details on PT Vale's High Sulphur Fuel Oil ("HSFO"), diesel and coal consumption and average price:
1Q23 | 4Q22 | 1Q22 | |
HSFO volume (barrels) | 557,543 | 587,057 | 221,779 |
HSFO average price per barrel | US$77.44 | US$82.04 | US$73.06 |
Diesel volume (kilolitres) | 15,241 | 13,449 | 14,787 |
Diesel average price per litre | US$1.02 | US$1.01 | US$0.67 |
Coal volume (t) | 50,923 | 41,936 | 91,793 |
Coal average price per t (*) | US$466.22 | US$491.71 | US$258.97 |
(*) Price in DMT (Dry Metric Ton) and CFR (Cost & Freight) basis
The table above shows lower HSFO and coal prices in 1Q23 compared to the previous quarter and reflects operational efficiency improvements. Since September 2022, responding to the significant increase of coal price in 2022, the Company still used HSFO as the main energy source for the burner in 1Q23.
PT Vale delivered EBITDA of US$173.58 million and disbursed approximately US$58.2 million in capital expenditures in 1Q23. Following the ground-breaking of Morowali Project in February 2023, the Company and partners continued to execute the works on the ground, both in mining and at the processing plant location. As part of the social program and manpower strategy, the Company provided skill training to communities in Morowali and Pomalaa District, to empower and prepare
[ 1 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia
them for the upcoming employment opportunities with the projects. PT Vale forecasts to spend US$132.2 million for sustaining capital expenditures, and US$585 million for growth projects (both for mining and capital injection) for the whole year of 2023.
The Company's cash and cash equivalents as of March 31, 2023 was US$717.3 million, an increase of 13% compared to US$634.0 million as of December 31, 2022. PT Vale has been, and will continue to, prudently control its spending to preserve cash.
The Company will also continue to optimize the production in the following quarters of the year, while at the same time striving to improve productivity and cost efficiency of the operation without compromising its foremost values: Life Matters Most, Respect Our Planet and Communities.
Readers are encouraged to review the Group's results. Operational achievements as well as unaudited financial results are summarized on the following pages.
For further information, please contact: Bernardus Irmanto, Chief Financial Officerptvi.investorrelation@vale.com
or visit our website at www.vale.com/indonesia
[ 2 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia
PT Vale Indonesia Tbk
Production and Financial Highlights
1Q23 | 4Q22 | 1Q22 | ||
Nickel in matte production1 | 16,769 | 16,183 | 13,827 | |
Nickel matte deliveries1 | 16,758 | 16,613 | 13,486 | |
Average realized price2 | 21,672 | 18,400 | 17,432 | |
EBITDA3 | 173.58 | 94.3 | 116.2 | |
Revenue3 | 363.2 | 305.7 | 235.1 | |
Profit3 | 98.1 | 32.0 | 67.6 | |
Earnings per share4 | 0.0099 | 0.0032 | 0.0068 | |
1 | metric ton (t) | |||
2 US$ per t | ||||
3 | US$ million | |||
4 | US$ |
[ 3 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia
PT Vale Indonesia Tbk and its subsidiaries
Interim Consolidated Statements of Profit or Loss
and Other Comprehensive Income
(In thousands of US$ except basic earnings per share)
1Q23 | 4Q22 | 1Q22 | ||||||
Revenue | 363,180 | 305,675 | 235,085 | |||||
Cost of revenue | (228,244) | (251,194) | (142,356) | |||||
Gross profit | 134,936 | 54,481 | 92,729 | |||||
Operating expenses | (6,142) | (6,897) | (4,325) | |||||
Other income | 117 | 504 | 249 | |||||
Other expenses | (9,236) | (12,903) | (1,544) | |||||
Operating profit | 119,675 | 35,185 | 87,109 | |||||
Finance income | 7,535 | 5,027 | 734 | |||||
Finance costs | (1,254) | (2,973) | (1,104) | |||||
Net finance income/(costs) | 6,281 | 2,054 | (370) | |||||
Profit before income tax | 125,956 | 37,239 | 86,739 | |||||
Income tax expense | (27,803) | (5,223) | (19,091) | |||||
Profit for the period | 98,153 | 32,016 | 67,648 | |||||
Other comprehensive | ||||||||
(loss)/income | ||||||||
Items that will not be reclassified to | ||||||||
profit or loss: | ||||||||
− Changes resulting from actuarial | ||||||||
remeasurement of post- | ||||||||
employment benefit liabilities | - | (105) | - | |||||
− Income tax on other | ||||||||
comprehensive income | - | 23 | - | |||||
Total other comprehensive | ||||||||
(loss)/income | - | (82) | - | |||||
Total comprehensive | ||||||||
income for the period | 98,153 | 31,934 | 67,648 | |||||
Profit for the period | ||||||||
attributable to: | ||||||||
Owners of the parent entity | 98,153 | 32,016 | 67,648 | |||||
Non-controlling interest | - | - | - | |||||
98,153 | 32,016 | 67,648 | ||||||
Total comprehensive income for | ||||||||
the period attributable to: | ||||||||
Owners of the parent entity | 98,153 | 31,934 | 67,648 | |||||
Non-controlling interest | - | - | - | |||||
98,153 | 31,934 | 67,648 | ||||||
Earnings per share | ||||||||
- Basic and diluted | ||||||||
(in full amount of US Dollars) | 0.0099 | 0.0032 | 0.0068 |
[ 4 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia
PT Vale Indonesia Tbk and its subsidiaries
Interim Consolidated Statements of Financial Position
(In thousands of US$)
March 31, | December 31, | March 31, | ||||
2023 | 2022 | 2022 | ||||
Assets | (Unaudited) | (Audited) | (Unaudited) | |||
Cash and cash equivalents | 717,267 | 634,042 | 518,022 | |||
Trade receivables - Related parties | 120,598 | 141,377 | 88,113 | |||
Inventories | 168,102 | 155,753 | 202,793 | |||
Prepaid taxes - Corporate income tax | - | - | 2,342 | |||
- Other taxes | 71,723 | 48,723 | 67,015 | |||
Prepayments and advances | 4,002 | 4,444 | 3,477 | |||
Other current financial assets | 5,412 | 5,463 | 2,523 | |||
Total current assets | 1,087,104 | 989,802 | 884,285 | |||
Restricted cash | 91,559 | 73,044 | 73,044 | |||
Prepaid taxes - Corporate income tax | 10,933 | 10,933 | 8,742 | |||
- Other taxes | 31,636 | 30,869 | 52,855 | |||
Investments in associates | 12,709 | - | - | |||
Fixed assets | 1,556,198 | 1,549,857 | 1,520,203 | |||
Other non-current financial assets | 3,430 | 3,611 | 4,783 | |||
Total non-current assets | 1,706,465 | 1,668,314 | 1,659,627 | |||
Total assets | 2,793,569 | 2,658,116 | 2,543,912 | |||
Liabilities and Equity | ||||||
Trade payables - Related parties | 190 | 298 | 195 | |||
- Third parties | 123,847 | 115,296 | 122,536 | |||
Accruals | 37,677 | 27,772 | 27,026 | |||
Short-term employee benefit liabilities | 15,729 | 26,244 | 14,067 | |||
Taxes payable - Corporate income tax | 18,764 | - | - | |||
- Other taxes | 4,474 | 2,407 | 3,822 | |||
Lease liabilities | 1,874 | 1,816 | 1,413 | |||
Share-based payment liabilities | 141 | 467 | 39 | |||
Other current financial liabilities | 2,685 | 739 | 1,447 | |||
Total current liabilities | 205,381 | 175,039 | 170,545 | |||
Long-termpost-employment benefit | ||||||
liabilities | 30,197 | 28,457 | 26,738 | |||
Deferred tax liabilities | 22,050 | 24,891 | 44,284 | |||
Lease liabilities | 3,671 | 3,918 | 3,041 | |||
Provision for asset retirement | 79,423 | 71,031 | 77,195 | |||
Total non-current liabilities | 135,341 | 128,297 | 151,258 | |||
Total liabilities | 340,722 | 303,336 | 321,803 | |||
Equity | 2,452,847 | 2,354,780 | 2,222,109 | |||
Total liabilities and equity | 2,793,569 | 2,658,116 | 2,543,912 |
[ 5 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575 www.vale.com/indonesia
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PT Vale Indonesia Tbk published this content on 26 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2023 12:24:18 UTC.