Padaeng reports third quarter profit of 362 million baht
Padaeng Industry Public Company Limited, the major zinc producer in Southeast Asia announces a consolidated third-quarter net profit of Bt 362 million baht, equivalent to earnings of Bt 1.60 baht per share. For the first nine months of this year, the company’s consolidated net profit was Bt 966 million or earnings of Bt 4.27 per share.
The third quarter net profit increased by 25% from the previous quarter and 56% compared to the same quarter last year.
The average zinc price in Q3 this year was slightly lower than the same period last year. However, the zinc price in Baht was 13% lower due to the appreciation of the Baht against the US dollar.
Due to the rainy season, the local demand dropped from Q2 but was also down 17% compared to last year third quarter. Despite the drop in domestic sales, the total sales volumes were 9% higher than last year thanks to exports to South East Asia.
Following the drop of the zinc price since last quarter, the result was further affected by the high price of the purchased inventories compared to the selling price.
All those factors were nevertheless largely compensated by the positive contribution of the high zinc price following the much reduced level of forward hedges in Q3 compared to last quarter and previous year.
For the last quarter of the year, the company does not expect the local market to improve significantly. It expects the last quarter result to be further impacted by the high price of the purchased inventories and by the reduced contribution of the mine following the delays in obtaining a new mining lease.
The Company has stopped its mining operation temporarily and, after the Cabinet approved the use of 1A watershed on the existing premises, is presently waiting for the regulatory approval by the Department of Primary Industry and Mines, Mineral Act Committee and by the Royal Forestry Department (forestry permits).
Established on April 10, 1981, Padaeng Industry Public Company Limited is listed on the Stock Exchange of Thailand in the Resources Sector (Mining). The company is the only producer of high quality zinc in South East Asia, with an annual production capacity of 110,000 metric tons of zinc metal and alloy.