PDI continues its investment plan in the second half of 2018

PDI is speeding up its new investment plan to achieve its target in the second half of this year. Thanks to PDI’s recent strong financial performance, the company now has more than 2 billion baht ready to invest. The company’s solar farm business is expected to increase capacity by 100 megawatts this year. PDI is confident that its 2018 revenue and profits are trending positively, even if the results may not be as high as last year.

        

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), said the company is intensifying exploring investments in the renewable energy business. Currently, PDI has a solid financial position, with expected free cash exceeding 2 billion baht ready to invest. Most likely that company will invest more in renewable energy business this year, as it seeks to expand its solar capacity by another 100 megawatts.

 

“Our renewable energy business has progressed well and we expect to make additional investments in this area in the second half of 2018,” Mr. Vanbellen said. “Moreover, additional investments in environmental management and materials recycling are being explored. PDI is considering acquiring potential companies with attractive returns on investment to generate sustainable revenues and profit.”

 

Mr. Vanbellen stated that the company’s prospective performance in 2018 is positive, with future revenues and profit to be mainly generated from renewable energy and zinc trading businesses. Also, additional returns on the sales of assets maybe expected. PDI ended its traditional zinc production business last year. The company set a target of trading 50,000 tons of zinc metals in 2018.

 

On May 18, 2018, PDI registered to increase its capital with the Ministry of Commerce from 2,260,000,000 baht to 3,013,333,330 baht by issuing 75,333,333 new ordinary shares with 10-baht par value for a total of 753,333,330 baht to accommodate the conversion of PDI-W1 warrants, at an exercise price of 33-baht. This capital increase will help the company to have a strong financial structure for future business expansions.

 

In the first quarter of 2018, PDI recorded revenue of 1.289 billion baht and a net profit of 97 million baht, down from the same period last year when it posted a net profit of 313 million baht. This was due to PDI closing its conventional zinc business last year, as it has entirely switched its business model to zinc trading this year. However, PDI will remain positive with profits mainly from the renewable energy business and other incomes from the management of existing obsolete assets from the zinc business.

 

About PDI

PDI, or Padaeng Industry Public Company Limited, was founded April 10, 1981 and listed on the Stock Exchange of Thailand with a registered capital of 2,260 million baht. PDI was a zinc mining and smelting company for over 30 years. In 2014, PDI reassessed its business structure in anticipation of a shift to sustainable business, with the objective to increase eco-efficiency and to foster growth. The Company is structured in three business units: PDI Energy – providing energy mainly from renewable sources; PDI Materials – providing added value materials from recycled materials; and PDI Eco – providing waste management solutions for complex industrial waste

 

In the first quarter 2018 PDI posted a net profit of 97 MB Business will continue to grow

PDI said its 1Q2018 earnings results met expectations with a net profit of 97 million Baht from renewable energy businesses and zinc trading. The Company is confident to invest more to expand its new business and to sustainably build income and profit. It aims to increase the capacity of solar farms with 100 megawatts this year.

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), revealed the Company recorded sales and services of 1,289 million Baht and a net profit of 97 million Baht in the first quarter of 2018.

The first quarter performance met its expectations even though it is down from the 1Q2017 net profit of 313 million Baht after the Company ended its conventional zinc business and transitioned into renewable energy and zinc trading business. Profit margins from the trading of zinc cannot be compared with the profit from zinc operations last year from low-cost zinc ores inventories. Nevertheless, PDI remains confident in the positive outlook of its business performance this year. It predicted its profit will remain considerable, mostly from renewable energy and the management of existing obsolete assets from the zinc business.

Mr. Vanbellen said the Company invested successfully, especially in renewable energy during its business transition. Presently, PDI has solar farms in Thailand and Japan with a combined capacity of 50 megawatts, with full contribution of revenues and profit in 2018.

This year, PDI will further optimize its operating solar farms under PDI Energy to assure robust production and targets to expand the capacity with 100 megawatts. It is eyeing opportunities to invest in other potential businesses, which to grow income and profits and increase returns to shareholders.

 About PDI

PDI, or Padaeng Industry Public Company Limited, was founded April 10, 1981 and listed on the Stock Exchange of Thailand with a registered capital of 2,260 million Baht. PDI was a zinc mining and smelting company for over 30 years. In 2014, PDI reassessed its business structure in anticipation of a shift to sustainable business, with the objective to increase eco-efficiency and to foster growth. The Company is structured in three business units: PDI Energy – providing energy mainly from renewable sources; PDI Materials – providing added value materials from recycled materials; and PDI Eco – providing waste management solutions for complex industrial waste.

 

PDI shareholders approved dividend payment of 1.50 Baht/share

PDI shareholders approved the dividend payment of 1.50 Baht per share and issuing 75.33 million free warrants through the rights offering for existing shareholders only. The shareholders also approved an increase in the Company’s capital and the issue of 75.33 million new shares to accommodate future warrant conversions. PDI has a positive outlook for 2018 and will continue to invest more to expand its business.

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), said the 2018 annual general shareholder meeting passed a resolution to pay dividends on the 2017 financial performance at 1.50 Baht per share, for a total of 339 million Baht. The shareholder registration for dividend payment will be closed on May 21, 2018.

Moreover, PDI shareholders also approved the issue of 75,333,333 warrants (PDI-W1) to existing shareholders at a ratio of three existing shares held to one free warrant. The warrants have a three-year duration from May 15, 2018 to May 14, 2021 with the exercise price of 33.00 Baht.

PDI will raise its registered capital from 2,260,000,000 Baht to 3,013,333,330 Baht by issuing 75,333,333 new shares with a par value of 10 Baht for a total of 753,333,330 Baht to accommodate the first round of warrant conversion (PDI-W1).

The capital increase will give PDI a stronger financial position for future expansion and investment. This will also expand the company’s cash flow and readiness to invest in potential projects in the future, which will generate more profits and build long-term value for shareholders.

Mr. Vanbellen noted that the Company has a positive outlook for 2018, with a projection of satisfactory revenues and net profit. The 2018 target might not match the Company’s 2017 earnings, when global zinc prices soared sharply and the Company earned good returns on its inventory of low-cost zinc ores. This year, PDI’s revenue and net profit will come from renewable energy through PDI Energy. Presently, PDI has solar farms in Thailand and overseas (Japan) with a combined capacity of 50 megawatts and the target to expand the capacity to invest in 100 megawatts more by the end of this year.

Last year PDI ceased its conventional zinc operations and transformed its business model into a zinc trading business in 2018.  The zinc business transformation since early this year will support PDI in reaching its zinc sales target of 50,000 tons per year.

“The Company has enjoyed very good business performance and retained earnings, and this gives us a solid financial position with free cash flow ready to invest in new projects. We will continue to explore new investment opportunities which will be viable and earn good returns. Our focus remains renewable energy, waste management and materials as well as acquiring attractive businesses,” Mr. Vanbellen said.

PDI’s 2017 performance was very good, with its net profit hitting a 10-year record high and the third highest in the Company’s 33-year history. The Company posted a net profit of 905 million Baht in 2017, rising 89% from 2016.

 General Information

 PDI, or Padaeng Industry Public Company Limited, was founded April 10, 1981 and listed on the Stock Exchange of Thailand with a registered capital of 2,260 million Baht. PDI was a zinc mining and smelting company for over 30 years. In 2014, PDI reassessed its business structure in anticipation of a shift to sustainable business, with the objective to increase eco-efficiency and to foster growth. The Company is structured in three business units: PDI Energy – providing energy mainly from renewable sources; PDI Materials – providing added value materials from recycled materials; and PDI Eco – providing waste management solutions for complex industrial waste.

 

 

PDI’s started its second 11-MW solar farm in Japan

PDI Energy now targeting to increase capacity by 100 MW this year

Strong financial position with cash for new investment 2 billion Baht

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), said Our second solar farm, in Nogata, Japan, with a capacity of 11 megawatts, started its commercial operation on March 1, 2018. This gives PDI a combined capacity of 50 megawatts in solar farms in both Thailand and Japan. This year, PDI Energy will continue to focus on its renewable energy business in Thailand and overseas with plans to increase capacity by another 100 megawatts this year.

The Company still continues exploring additional investment opportunities which have the potential to generate stable revenue and profit, in order to continuously generate returns for shareholders. PDI has closed its conventional zinc business since last year and has entirely switched its business model to zinc trading this year. It set its target to sell 50,000 tons of zinc metals in 2018 and open opportunities to sell other metals. Customers are still confident in PDI’s quality and service, especially its technical support service, for which the Company has a longstanding recognized excellent track record.

PDI has changed its business model from zinc production and distribution to zinc trading, as it wants to build sustainable growth in the future. At the same time, PDI has shifted its investment focus to renewable energy, recycled materials and waste and environmental management. PDI began its renewable energy business in 2016 and has generated ever higher revenues since then. We will maximize our existing unused assets in the zinc business such as the factories in Rayong and Tak, which have stopped their operations since last year,” Mr. Vanbellen said.

Last year, PDI achieved an extremely strong performance with a record high net profit in the past 10 years, and the third highest in the 33 years since its establishment. Last year, the company posted a net profit of 905 million Baht, rising 89% year-on-year, on the back of surging global zinc prices, which rose 40% on average in 2017. With good performance and sustained profits, the company has a solid financial position and free cash exceeding 2.0 billion Baht for new investments.

General Information

 PDI, or Padaeng Industry Public Company Limited, was founded April 10, 1981 and listed on the Stock Exchange of Thailand with a registered capital of B 2,260 million Baht. PDI was a zinc mining and smelting company for over 30 years. In 2014, PDI reassessed its business structure in anticipation of a shift to sustainable business, with the objective to increase eco-efficiency and to foster growth. The Company is structured in three business units: PDI Energy – providing energy mainly from renewable sources; PDI Materials – providing added value materials from recycled materials; and PDI Eco – providing waste management solutions for complex industrial waste.

 

PDI 2017 net profit highest in 10 years

Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), commented on the Company’s FY2017 excellent performance. Total revenues are up to 6,357 million Baht, surging 19% from the year before, whilst net profits almost doubled to 905 million Baht, up 89% from 478 million Baht in 2016. The 2017 net profit is the highest in the past 10 years, driven by strong sales performance with rising global zinc prices, jumping above US$3,200 per ton and sustained solid local market premiums. The average global zinc price in 2017 was US$2,884 per ton, 40% higher than the average price of US$2,019 per ton in 2016.

“Our 2017 performance was better-than-expected, marking a record high in 10 years and the third best result ever in the 33 years since our establishment. The record net profit was driven by surging global zinc prices in 2017, which allowed PDI to generate higher revenue and net profit from our low-cost zinc ore inventory of 30,000 tons from the Mae Sot mine. These zinc ores were distributed and sold to local customers. Furthermore, PDI applied strict cost management and expense control, and realized for the first time substantial revenues from its renewable energy business,” Mr. Vanbellen said.

Last year, PDI successfully achieved its strategic make-over plans to end its conventional zinc operations and transform into a zinc trading business in 2018. Moreover, PDI will continue to expand its renewable energy business to generate higher revenues and net profit. While the Company’s renewable energy projects have achieved good progress, its recycled waste and environmental management businesses have just started and PDI continuous to explore more attractive M&A targets in the future as well.

PDI expects excellent 2017 performance with the highest net profit in a decade.

Padaeng Industry Public Company Limited (PDI) is confident its 2017 financial results will reach its highest level in the past 10 years and the second best of PDI’s 33 year-history. Results are benefitting from a 40% rise of global zinc prices, paving the way for PDI to make strong profits from low-cost zinc ores from its Mae Sot mine, strengthening its financial status to realize its successful transition from zinc to new sustainable businesses.

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), said the Company forecasts its 2017 financial results will be better-than-expected, to be the highest in the past 10 years and the second best of PDI’s 33 year-history.

This is exceptional profit is projected due mainly to rising zinc prices – exceeding $3,200 per ton – at an average of US$2,884 this year, a 40% rise from an average of $2,091 per ton in 2016. This enables PDI to generate high revenues and profits from its Mae Sot mine, low-cost zinc inventory – totaling 30,000 tons – sold to domestic customers. Moreover, PDI has been able to keep costs and expenses efficiently and effectively under control and realize additional revenues from its new renewable energy business.

“During the first nine months of this year our net profit reached 637 million baht, already largely exceeding the 2016 full-year net profit of 478 million baht. With good performance and high retained earnings, PDI maintains a strong financial position with a solid cash flow ready for new investments, even after acquiring 30MW of 6 solar farms in Thailand with the investment of 1.3 billion baht earlier in September this year.” Mr. Vanbellen said.
This year, PDI’s conventional zinc business has come to a smooth end and has achieved its goal before the shift to the service based zinc trading business next year.

The Company manifested remarkable progress and continues to expand its make-over strategy into green sustainable businesses, driven by investments targeting businesses in Energy, Eco and Materials. Other M&A targets, when encouraging, will also be considered.

PDI records a nine-month net profit of 637 million baht, leveraged form strong sales income under improved zinc prices

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), said that the sales and services revenues were 4,328 million baht in the first nine months of 2017, a 16% rise from 3,741 million baht in the same period last year, and its net profit rose 80% year-on-year to 637 million baht, compared to a the net profit of 352 million baht for the same period of previous year.

High contribution to the Company’s strong performance is the sustained rise of global zinc prices. The average price during 9 M 2017 sharply increased to USD2,781 per ton, surging 43% from USD1,948 per ton in the same period last year.

The gross profit of 9M 2017 significantly increased from 629 million baht in 9M 2016 to 969 million baht despite increase in cost of goods sold due to higher raw material costs from imported metals.

For the third quarter of 2017, the Company recorded sales and services revenues totaling 1,439million baht, up 17% from 1,231 million baht in the same period last year.

The third quarter net profit reached 114 million baht, compared to a net profit of 222/MB for the same quarter of previous year. As a result of the ceasing of the Zinc operations, total sales volumes in Q3 2017 dropped by 6% from Q3 2016. The sales volumes of imported metals, at lower margins than PDI’s own mine production, reached 54% of total sales in Q3 2017. Average zinc prices in the third quarter were $2,962 per ton, increasing 32% from USD2,253 per ton in the third quarter of 2016.

“Overall, our performance in 2017 is extremely strong. We’re confident our revenues and net profit will exceed last year’s. Zinc business remains PDI’s 2017 core business, generating 90% of total revenues on the back of record high zinc prices philandering USD3,300 per ton since the middle of August,” Mr. Vanbellen said.

The Company marked noteworthy progress in its make-over strategy into renewable Energy by acquiring 30MW of solar farms in Thailand in September 2017. Currently, the Company operates 38.6MW of solar power plants. The second solar power plant with installed capacity of 10.5MW in Japan is under construction and expected to COD in Q1 2018, which will boost the total capacity to 50MW.

The strong performance with growing retained earnings provides PDI with a healthy financial position and cash flow ready to realize new investments. PDI continues to expand its green sustainable business, searching for opportunities to invest in new projects, generating good returns. The Company’s investments target businesses in Energy, Eco and Materials. Other M&A targets, when encouraging, will also be considered.

PDI signs MoU with EDL-Gen to jointly invest in two hydropower plants in Laos with 114 MW capacity in total.

PDI makes a further expansion in renewable energy by signing a memorandum of understanding to jointly invest in two hydropower plants in Laos, Nam San 3A and Nam San 3B, with a total capacity of 114 MW. The investment objective is to help PDI attain solar and hydro power plants in Asia with a total capacity up to 200 MW within two years.

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), said the Company is moving forward to expand its renewable energy business. PDI signs an MoU with EDL-Generation Public Company on Oct 4, 2017, at Vientiane, Laos, for a joint investment in two hydropower plants, Nam San 3A (69 MW capacity), and Nam San 3B (45 MW capacity). The total capacity is 114 MW.

The Nam San 3A and Nam San 3B hydropower plants are located in Xieng Khouang province of Laos. They have been in commercial operation for two years with a 27-year electricity sales contract with Electricite du Laos. PDI Energy, a subsidiary of PDI, has set its goal to take a major stake in both hydropower plants.

“The investment in two hydropower plants in Laos is in line with our strategy to expand the renewable energy business for PDI. We expect to sign a share purchase agreement within 2017, and this will enable PDI Energy to operate several solar and hydro power plants in Asia with a total capacity up to 200 MW within only 2 years,” Mr. Vanbellen said.

Currently, PDI has seven solar farms in Thailand, with a total capacity of 37 MW, in Tak, Prachinburi, Khon Kaen and Samut Sakhon. Besides this, it has two solar farms in Japan with a total capacity of 13 MW. The Nanao solar plant has been in operation since October last year while the Nogata solar plant will be finished and will begin commercial operation in the first quarter of 2018.

People in the Picture;
1. Madam Rattana Prathoumvanh, Managing Director and CEO of  EDL- Generation Public Company
2. Mr. Francis Vanbellen, Managing Director of PDI