Padaeng Industry reports a first-half net profit of 94.8 million baht
Padaeng Industry reported its first-half of the year profit of 94.8 million baht, up from 71.3 million baht from a year ago and revenue of 2,381 million baht, up 14 %, due mainly to the increase in domestic sales and world zinc prices.
On August 15, Padaeng Industry Public Company Limited, the sole zinc smelter in Southeast Asia, reported its first-half (January-June) performance to the Stock Exchange of Thailand. The company's consolidated financial statement showed a net operating profit of 94.8 million baht, compared to 71.3 million baht in the same period of 1999 and earnings per share of 0.63 baht, up from 0.47 baht, also from a year earlier. Revenue from the first half of the year's operations rose 293 million baht or 14 % to 2,381 million baht from 2,088 million baht in the corresponding period of 1999.
The healthier performance, reflected by the continued increase in profit, was mainly attributed to the fast growing domestic market. Higher world metal prices was also a contributing factor to the company's profit. The average zinc price for the period was US$1,132 per metric tonne, compared with US$1,007 per metric tonne in the same period last year. The weaker baht also helped increase the company's sales revenue.
During the first six months, the total zinc sales amounted to 46,766 metric tonnes. The ratio of domestic sales amounted to export sales was 76 % to 24 % compare with 64 % to 36 % respectively, in the same period of 1999. This represents an increase in domestic sales for the period, of 15 % from 30,990 metric tonnes in 1999 to 35,587 metric tonnes in 2000.
On the production side, the Padaeng mine at Mae Sot district in Tak province, produced 86,562 metric tonnes of zinc silicate ore while the zinc refinery produced zinc metals totaling 45,938 metric tonnes, consisting of 34,543 metric tonnes of zinc ingots and another 11,395 metric tonnes of zinc alloys. In addition, the refinery also utilized a greater proportion of zinc silicate in combination with zinc sulphide, from 33 % to 37 %, enabling the company to reduce cost of production per unit.