PT Vale reports a profitable quarter in the third quarter of 2018

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PT Vale reports a profitable quarter in the third quarter of 2018


PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) today announced its unaudited results for the third quarter of 2018 (“3Q18”). The Company recorded production of 18,193 MT of nickel in matte, and sales of US$ 205.0 million in the quarter.

I am pleased to report a profitable third quarter in 2018 as we benefited from a higher sales price,”

Nico Kanter

“Compared to the previous quarter, production of nickel in matte and deliveries of nickel matte were about 4% and 1% lower, respectively. However, revenue was slightly higher due to a higher average realized price in 3Q18. We remain focused on optimizing our production capacity, improving efficiencies and reducing costs.”

On the operations side, production in the third quarter of 2018 was below plan as a result of unplanned maintenance activities to address identified operational issues and ensure the safety of the operations. PT Vale was able to move the planned maintenance schedule from 4Q18 forward to 3Q18, and thus does not expect any additional major maintenance activities for the remainder of the year.

The Company’s cost of revenue in 3Q18 decreased by US$4.8 million despite significant increases in fuel and coal prices. The High Sulphur Fuel Oil (HSFO) price increased by 13%, High Speed Diesel (HSD) by 5% and coal by 7% on a unit cost basis in 3Q18 compared to the previous quarter. Fuel represents one of PT Vale’s largest costs.

Due to the unplanned 3Q18 maintenance activities, PT Vale is revising its full-year production target to 75,000 t in 2018, down from 77,000 t forecast in 2Q18. At the same time, the Company will maintain its focus on improving cost efficiency to sustain competitiveness in the long-term without compromising the Company’s foremost value: Life Matters Most.

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Quarterly Result Financial Statement Production Report

PT Vale reports a profitable quarter in the third quarter of 2018