Press Release

Padaeng posts 75.7 million baht net profit in three quarters.

Padaeng Industry Plc reported its net profit for the Janaury-September period of 75.7 million baht, a marked improvement from a net loss of 22.3 million baht in the same period of last year. Sale revenue for the period increased 569 million baht or 18 % year-on-year to 3,719 million baht,helped by the improvement of domestic zinc demand, the surge of global zinc prices and the windfall gains brought by the weaker baht.

Padaeng Industry Plc reported the Stock Exchange of Thailand its performance in the first nine months of this year that the net profit for the period as shown by the company’s financial statement was 75.7 million baht compared to the net loss of 22.3 million baht in the same period last year. The earnings per share also rose to 0.46 baht, a turnaround from the loss per share of 0.15 baht. Total sales for the period reached 3,719 million baht, 569 million baht or 18% increase from the same period of last year.

The three-quarter consolidated financial statement also showed a net profit of 47.6 million baht compared to a net loss of 63.6 million baht in the same period last year while the earnings per share increased to 0.29 baht from the loss per share of 0.42 baht.

The company’s earnings were boosted a significant increase in metal sales due chiefly to the expansion of domestic market, the increase in the world metal price to an average of US$1,147 per metric tonne over the past nine months and the forex gains from the weaker baht.

On the marketing side, the company had total metal sales of 71,808 metric tonnes, of which 55,035 metric tonnes were slated for domestic market and 16,773 metric tonnes for oversea market. The proportion of domestic sales to export was 77% to 23%, compared with 66 % to 34% respectively for the same period of last year.

In the third-quarter financial statement, ending September 30, the company posted a net operating loss of 32.4 million baht, compared with the net loss of 129.8 million baht in the same period of last year. The loss was a result of the foreign exchanges loss of 99.6 million baht. Excluding the foreign exchanges loss, the company would have made an operating profit of 67.2 million baht, compared with the profit of 73.5 million baht in the same period of last year because the company was burdened to invest in production efficiency improvement and to fund the capital increase.

In the consolidated financial statement, the company posted a net operating loss of 47.2 million baht in the third quarter, a marked reduction from the net loss of 135 million baht due aminly to the foreign exchanges loss and increased production cost.

Due to its intensive business restructuring and the efficient production, marketing and financial management over the past few years, Padaeng Industry Plc’s performance keeps steadily improving which reflects in the company’s capiltalization and continued profit increase achievement. As a result, the company could honor the debt repayment agreement with all financial creditors with debt burden significantly reducing to 462 million baht and US$18.20 million this year from 1,019 million baht and US$40.12 million in 1999 while the debt to equity ratio also lowered to 1.01 from the previously 3.46.

Padaeng Industry Plc has been the sole zinc smelter in South East Asia for 19 years and has been recently selected as the world’s best small company this year by the Forbes Global, the world’s leading business magazine. The company was among the top five of Thai companies which were ranked the world’s best 300 small companies.