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.