PT Vale reports profitable quarter in 1Q18


PT Vale reports profitable quarter in 1Q18

PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO) today announced its unaudited results for the first quarter of 2018 (“1Q18”). The Company recorded sales of US$170.5 million in the quarter. Sales in 1Q18 were 6% lower than in 4Q17 but 18% higher than 1Q17 as the average realized price in 1Q18 was higher than in 1Q17.

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

Nico Kanter

“However, considering the volatility in the market, we remain focused on optimizing our production capacity, improving efficiencies and reducing costs,” said Nico Kanter, CEO and President Director of the Company.

On the operations side, nickel in matte production in 1Q18 was 11% lower than 4Q17 due to planned maintenance activities. However, production in 1Q18 was aligned with 1Q17 when similar maintenance activities were carried out. These maintenance activities are crucial to improving operational efficiency and ensuring operational continuity.

PT Vale’s cost of revenue fell by 6% from US$163.6 million in 4Q17 to US$154.2 million in 1Q18, aligned with lower production in 2018. However, cost of revenue per metric ton of nickel in matte in 1Q18 increased by 6% from the previous quarter driven mainly by higher costs in fuel and coal. Fuel and coal prices increased by 10% and 7% respectively, on a unit cost basis. These two consumables represent PT Vale’s largest cost items.

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Quarterly Result Financial Statement Production Report

PT Vale reports profitable quarter in 1Q18