Posted on 01 Aug 2023
Vale Indonesia posted higher revenue in the first half, underpinned by increased production and controlled cost, Kallanish notes.
The group says its first-half revenue increased 16.72% on-year to $658.9 million, mainly due to higher shipment volume of 6,208 tonnes in the period. In the second quarter alone, revenue stood at $295.8m, down from $363.2m in Q1.
Profit in H1 also climbed, by 12.03% to $168.5m from $150.4m a year ago. As for the second quarter, profit fell to $70.4m from $98.1m in Q1.
Second-quarter production surged to 16,922t, marking a significant 35% increase compared to a year ago. This output aligns with the group’s annual production target of approximately 70,000t for 2023.
During the second quarter, the firm disbursed approximately $60.8 million in capital expenditure, an increase of 36% compared to capital expenditure a year earlier.
“We have sustained positive earnings thanks to the seamless execution of our operation. Moving forward, we will continue to enhance our efficiency and cost reduction efforts. In this quarter, PT Vale managed to … decrease its quarterly unit cash cost of revenue even further, surpassing the level achieved in the previous quarter," says Vale Indonesia chief executive and president director Febriany Eddy.
PT Vale says it remains committed to seeking avenues for cost reduction, including adjustments in other components, as part of its ongoing efforts to manage cost. Aside from cost control measures, PT Vale is taking steps to manage its cash flow in anticipation of an unfavourable nickel price environment.
Source:Kallanish
