I 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.