ANTAM's Unaudited 1Q 2010 Net Profit Surges 125% To Rp202 Billion
Home News, Reports and Presentations News Releases
Jakarta, April 22nd, 2010 – PT ANTAM Tbk. (ASX - ATM; IDX - ANTM) announces today unaudited consolidated net profit of Rp202 billion and Earnings per Share (EPS) of Rp21.20 for the first three months of 2010. The increase was attributed from higher ferronickel and nickel ore sales as well as increased prices of ANTAM’s main commodities. ANTAM recorded higher net profit despite decreased revenue due to lower trading activities.
ANTAM’s President Director Alwin Syah Lubis said:
Overall, revenue decreased 37% to Rp1.6 trillion compared to Rp2.6 trillion in 2009 inline with lower trading activities. Sales of nickel segment which comprised of ferronickel and nickel ore, was the biggest contributor to ANTAM’s sales with 51% contribution or equal to Rp850 billion.
Sales of ferronickel increased 43% to 1,663 TNi due to higher demand in the first quarter of 2010 over the same period in 2009. The ferronickel sales would have been higher if production in transit to ANTAM’s customers had arrived before the end of the quarter. During the first quarter of 2010, ANTAM shipped 4,177 TNi of ferronickel, and most were exported in February and March. Ferronickel production at Pomalaa rose 34% to 4,411 TNi due to the optimal load of the FeNi III smelter following the optimisation program which was completed in September 2009. As the average selling price of ferronickel rose 99% to US$9.38 per lb., revenue from ferronickel rose 132% to Rp317 billion.
Inline with higher demand, ANTAM increased the volume of nickel ore sales over last year by 62% to 1,301,469 wmt. The revenue benefits were higher due to increased ore prices, generated Rp533 billion in revenue or a 105% increase over first quarter of 2009. Nickel ore production increased 49% over 2009 to 1,560,643 wmt.
Meanwhile, ANTAM’s gold sales for the first three month of 2010 decreased by 66% to 2,048 kg due to lower trading activities. Management decided to limit gold trading activities inline with the gold price fluctuations which increased risks. Gold production only decreased by 5% to 681 kg in the first quarter of 2010. Inline with lower sales, and despite a 22% higher gold price at US$1,133.15 per toz., revenue from gold decreased by 67% to Rp691 billion.
The cost of goods sold decreased 52% to Rp1.2 trillion. This was due to the decreased cost of precious metals purchases that fell 76% to Rp462 billion on a 74% decrease of gold sales from the trading activities to 1,348 kg. Inline with higher nickel ore production, ore mining fees increased by 30% to Rp260 billion. Fuel cost also rose by 39% to 226 billion due to higher ferronickel production. Approximately 99% of ANTAM’s total fuel is used in the Southeast Sulawesi Nickel Business Unit for ferronickel processing.
ANTAM’s financial condition remains solid and strong.
ANTAM’s investment loans-net of current maturities decreased 61% to Rp232 billion from Rp590 billion in the first quarter of 2009. ANTAM’s cash and cash equivalents position was strong at Rp2.9 trillion. Meanwhile, ANTAM’s working capital remained healthy at Rp4.8 trillion. The current ratio at the end of the March 2010 stood at 7.6x with a debt to equity ratio of 5%.
ANTAM’s net cash provided by operating activities was Rp231 billion, an increase of 177% over 2009. The increase was largely due to a 46% lower payment to suppliers to Rp1.4 trillion as ANTAM limited trading activities. Cash at the end of the period decreased by 13% over the first quarter of 2009 to Rp2.9 trillion mainly due to lower cash receipts from customers’ inline with lower gold sales, the difference of the beginning of balance and effect of foreign exchange rate fluctuation in cash and cash equivalents.