PT Vale reports Net Earnings of US$29 million in 1Q20

About Vale

4/28/2020

PT Vale reports Net Earnings of US$29 million in 1Q20

Jakarta, April 28, 2020 – PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) and its subsidiaries (together the “Group”) today announced its unaudited results for the first quarter of 2020 (“1Q20”).

The Group recorded positive earnings of US$29 million in 1Q20, significantly higher than in the same quarter last year when the Group recorded a net loss of US$20.2 million. However, it was 49% lower than earnings in 4Q19 of US$57.2 million, mainly due to a lower nickel price and lower shipments.

We appreciate the hard work of all employees at PT Vale. Despite having to focus on anticipating possible impacts of COVID-19 on our operations, we were still able to achieve good results this quarter.

Nico Kanter, CEO and President Director

“We appreciate the hard work of all employees at PT Vale,” said Nico Kanter, CEO and President Director of the Company. “Despite having to focus on anticipating possible impacts of COVID-19 on our operations, we were still able to achieve good results this quarter.” The COVID-19 pandemic has been spreading rapidly across the globe, causing an economic slowdown which negatively impacted supply-demand in the nickel industry. This, in turn, drove a downward trend in nickel prices in the first quarter of 2020, a trend that could potentially continue into the second quarter.

The Group has been executing several measures to anticipate and mitigate the potential impact of COVID-19 spread to the operation. While health and safety remains the top priority, the Group is committed to continuing production and project activities to the extent possible. Several important decisions and actions have been taken to minimize the risk of infection in the workplace. The Group is also working with local government to “flatten the curve” of the pandemic in the surrounding areas.

The average realized price in 1Q20 was US$10,428 per t, about 20% lower than the 4Q19 average realized price of US$12,991 per t. PT Vale recorded sales of US$174.6 million in 1Q20, 37% lower than sales recorded in 4Q19 of US$275.5 million. The Group’s cost of revenue in 1Q20 decreased by 14% to US$154.2 million from US$180.1 million in 4Q19.

On March 31, 2020, PT Vale, together with its shareholders, Vale Canada Ltd (“VCL”) and Sumitomo Metal Mining Co., Ltd (“SMM”) and PT Indonesia Asahan Aluminium (Persero) (“Inalum”) agreed to extend the signing deadline for the definitive agreements of Divestment to the end of May 2020.

PT Vale will continue to 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.


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Read the complete report by downloading the document below:

1Q20 Quarterly Result 1Q20 Production Report 1Q20 Financial Statement


PT Vale reports Net Earnings of US$29 million in 1Q20