Report to SET
14/Nov/01
Clarifications on company’s performances in the third quarter and nine months of 2001
1. For the quarter performance
From the Statement of Income (equity method), the company incurred net profit as of September 2001 of Bt83.7m compared to the net loss of Bt32.4m in the same quarter of last year or 358% increase. This was due to the increase in sale volume, the production efficiency improvement and the reduction of interest expense burden. Moreover, the result of converting long term loan from USD currency to local currency reduced the exchange rate risk.
For the sale revenue, the company has total revenue of Bt1,332.4m slightly decreased from the same quarter of last year. The total zinc metal sold which increased from 25,029 tons in the year 2000 to 26,232 tons in the third quarter of this year, and the weakening of Baht which increased our sale revenue, did not help increasing the total revenue because the depressing of average LME zinc world price. It decreased by 23% when compared to the same quarter of the year 2000 and the year 2001.
For the consolidated financial statement, the company has net profit of Bt83.7m, increased from the same quarter of last year which incurred net loss of Bt47.2m or a 277% increased in profit. This was due to reason as mentioned above.
2. For the nine-month period performance
From the statement of income (equity method) for the nine-month period, the company has a net profit of Bt335.6m, increased from the same period of last year by Bt259.9m or 343% increased. This was due to the increase in sale volume, the improvement of production efficiency and the lower burden of interest expense. Moreover, with the currency conversion of long term debt to Baht currency, the company has reduced exchange risk substantially. This helped improve profitability despite the stock revaluation provision, which the company had provided in accordance with the depressing LME world zinc price.
Total revenue for the nine-month period was Bt4,034.7m increased from Bt3,722.4m in the same period of last year or 8.4% increase. The total zinc metal sold was 77,881 tons, 8.5% increase. The reason for revenue increased was the sale increasing in volume and the weakening of Baht despite the depressing average LME world zinc price.
From the consolidate financial statement, the company had net profit of Bt486.4m in the first nine-month period while it was Bt47.7m net profit in the same period of last year with the reason mentioned above.
