PT Vale posts net loss but positive EBITDA in 1Q19

About Vale

4/24/2019

PT Vale posts net loss but positive EBITDA in 1Q19

PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) today announced its unaudited results for the first quarter of 2019 (“1Q19”). The Company recorded sales of US$126.4 million in the quarter. Sales in 1Q19 were 36% lower than in 4Q18 and 26% lower than 1Q18 due to a combination of lower production volumes and a lower average realized price in 1Q19.

Production in the first quarter of 2019 was approximately 36% lower than production in 4Q18 due to a combination of planned maintenance activities related to the Larona Canal Relining and unplanned electric furnace 4 issues,

Nico Kanter, CEO and President Director

“These maintenance activities are crucial to improving operational efficiency and ensuring operational continuity. Due to furnace 4 issues, PT Vale’s nickel in matte production was revised to 71,000 t – 73,000 t this year. Our operations team undertook several restorative measures on the furnace and is closely monitoring its condition to ensure its continued safe operation. Despite all these challenges in the quarter, the Company was still able to generate a positive adjusted EBITDA of US$4.0 million. We remain focused on optimizing production capacity, improving efficiencies and reducing costs.” said Nico Kanter, CEO and President Director of PT Vale.

PT Vale’s cost of revenue fell by 21% from US$189.8 million in 4Q18 to US$149.7 million in 1Q19, aligned with significant lower production in 1Q19. However, the cost of revenue per metric ton of nickel in matte increased by 24% as around 50% of production costs are fixed costs. In order to control the cost, the Company continued implementing several initiatives as part of US$50 million cost reduction program and realized cost savings of US$3.7 million in 1Q19, on top of the US$10.8 million realized in 2018.

PT Vale disbursed approximately US$50.2 million in capital expenditures in 1Q19. The Company’s cash and cash equivalents as of March 31, 2019 and December 31, 2018 were US$219.4 million and US$301.1 million, respectively. The lower cash balance in 2019 was driven primarily by lower sales as a result of lower production in 1Q19. PT Vale will continue to exercise prudent control of its spending to preserve cash.

The Company will maintain its focus on improving cost efficiency to sustain competitiveness in the long term without compromising the Company’s foremost values: Life Matters Most and Prize Our Planet.

Check out the highlight

1Q19 Results and Financial Highlight

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1Q19 Quarterly Result1Q19 Production Report1Q19 Financial Statement


PT Vale posts net loss but positive EBITDA in 1Q19