Padaeng reports net profit of Bt 555 million for Q2/2006
For the second quarter of 2006, Padaeng Industry Public Company Limited announces a consolidated net profit of Bt 555 million, or earnings per share of Bt 2.46 compared to Bt 198 million and earnings per share of Bt 0.88 during the same quarter 2005.
This quarter was in line with Q1 with increased sales on the local market by 10% and quite negligible exports due to a lack of raw materials resulting in a somewhat lower total sales volume than in 2005.
For the first six months of 2006, the consolidated net profit totalsBt 1,011 millionor earnings per share of Bt 4.47, compared to a net profit of Bt 333 million and earnings per share of Bt 1.47 for the same period last year (+204%). The company?s consolidated statement of income showed total sales from revenues and services of Bt 4,803 million, up Bt 1,691 million or 54% from that of 2005.
The Company benefited largely from the higher zinc price, which averaged US$ 2,767 per metric ton or a rise of 114%, over the same period last year. Especially in Q2/2006, the zinc price rose dramatically to average US$ 3,292 per metric ton, versus US$ 1,273 per metric ton for the same quarter last year.
For the H1, the local market demand increased by 3.1% compared to last year?s first half, with the consumption of alloy metals increasing by 8%, mainly for continuous galvanizing, and zinc metal demand increasing by almost 1%.
Total sales ofmetal for H1 reached 50,605 metric tons, some 5% lower than in the same period last year, mainly due to the combinedlack of concentrates and lower production at the mine but the impact was limited to the export sales (of alloys).
Exports of Padaeng will continue to be low this year, as all available metals will continue to be used primarily to support the local market.Overall, Padaeng will continue to benefit from the very high zinc price for about half of its exposure.
Established on April 10, 1981, Padaeng Industry Public Company Limited is listed on the Thai Stock Exchange in the Resources Sector (Mining). The company is the only zinc smelter in South East Asia, with an annual production capacity of 110,000 metric tons of zinc metal and alloy.