ANTAM Records Net Profit of Rp631.12 Billion, A Significant Jump of 290% Compared to Rp331.47 Billion Net Loss in First Nine Month of 2017
Home News, Reports and Presentations News Releases
Jakarta, November 30, 2018 - PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) is pleased to announce the consolidated net profit of Rp631.12 billion for the first nine month of 2018 (9M18). ANTAM's net profit in 9M18 rose by 290% from the Rp331.47 billion net loss for the first nine month of 2017 (9M17). The solid increase of profitability was also reflected in ANTAM's 9M18 operating profit of Rp1.93 trillion, a significant jump of 732% over ANTAM's 9M17 operating profit of Rp232.89 billion. The strong profitability result is also reflected from ANTAM's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in 9M18 which amounted to Rp2.14 trillion, an increase of 96% from Rp1.09 trillion EBITDA in 9M17. In 9M18 ANTAM's net sales reached Rp19.95 trillion, a 187% increase from Rp6.96 trillion of sales in 9M17. ANTAM's solid financial result in 9M18 is also supported with solid cash and cash equivalents of Rp5.81 trillion.
ANTAM's profitability was also supported by the Company's efficiency level in 9M18 of Rp15.67 billion or 97% of the annual internal target in 2018. The Higher of ANTAM's profitability in 9M18 was due to production and net sales increased as well as efficiency improvements which led to stable cash costs level.
Solid Performance of Production & Sales In 9M18
Solid performance of ANTAM's operations and sales of in 9M18 was reflected with ferronickel production of 19,264 tons of nickel contained in ferronickel (TNi), a 21% increase compared to 9M17 production of 15,813 TNi. Inline with increased production volume, ferronickel sales in 9M18 reached 19,149 TNi a 49% growth compared to 9M17 sales of 12,816 TNi. Higher ferronickel production and sales volume in 9M18 is due to optimum and stable ferronickel plant performance in Pomalaa with annual installed production capacity of 27,000 TNi. In 9M18, ferronickel sales was the second largest contributor to ANTAM's sales, amounting Rp3.85 trillion or equal to 19% of 9M18 total sales.
In 9M18 production volume of gold from Pongkor and Cibaliung mines reached 1,478 kg or slight increased compared to 9M17 production of 1,473 kg. Meanwhile, the total sales volume reached 22,388 kg or a 221% increase compared to 9M17 sales of 6,966 kg. ANTAM continues to increase gold sales through innovations on Logam Mulia (ANTAM-LM) gold products. In July 2018, ANTAM and PT Pos Indonesia (Persero) continued the strategic partnership in gold sales to increase the distribution channel of ANTAM-LM domestic gold products. In September 2018, ANTAM also partnered with PT Bank Jabar Banten Syariah (Bank BJB Syariah) in the sales of ANTAM-LM's precious metal products. The partnership aims to increase the distribution channel in West Java, Banten and DKI Jakarta regions. ANTAM' s gold sales in 9M18 amounted to Rp13.37 trillion or a 248% increase over 9M17 sales.
Production volume of nickel ore in 9M18 amounted to 6.49 million wet metric ton (wmt), or a 84% increase compared to 9M17 production of 3.51 million wmt. Total nickel ore sales volume amounted to 4.10 million wmt, a 99% increase compared to 9M17 nickel ore sales of 2.06 million wmt. In addition, bauxite production reached 788,000 wmt, an increase of 73% with the sales volume of 693,000 or a 39% increase.
ANTAM's Development Project Remain On Track
ANTAM is committed to expanding its downstream processing projects. The construction of ANTAM's strategic East Halmahera Ferronickel Plant Development Project (P3FH), remained on track with construction progress reached 80% at the end of 9M18. P3FH will have annual ferronickel production capacity of 13,500 TNi (line 1) in which construction is estimated to be completed by the end of 2018. After completion of P3FH, ANTAM's annual ferronickel production capacity will increase to 40,500 TNi from the existing production capacity of 27,000 TNi or a 50% increase.
In line with the Company's efforts to increase the added value of its mineral commodity especially the utilization of the Company's low grade nickel ore (<1.7% Ni) reserves, in October 2018 the Company signed a Heads of Agreement (HoA) of East Halmahera Blast Furnace Nickel Pig Iron (NPI) Plant Development Project with Ocean Energy Nickel International Pte. Ltd. (OENI). In the HoA, ANTAM is committed in having the availability of nickel ore for the Blast Furnace NPI Project, whilst OENI will ensure the project funding and timely completion of the construction project. The Blast Furnace NPI Project has a total production capacity of 320,000 tons of NPI (TNPI) or equivalent of 30,000 tons of nickel contained in ferronickel (TNi). The project will consist of 8 production lines with a total investment of around US$320 million. For the first stage, production from two lines is expected to commence in the fourth quarter of 2020 with all lines to commence production in 2023.
For bauxite, ANTAM is currently focusing on the development of Smelter Grade Alumina Refinery (SGAR) plant with PT INALUM (Persero). The project has an estimated total production capacity of up to 1 million ton SGA per annum (Stage 1). In October 2018, Inalum Group (Inalum & ANTAM) and Aluminum Corporation of China Ltd. (CHALCO signed a cooperation agreement in relation to the development of SGAR project.
Share Performance Was Solid During the First Ten Month of 2018 (10M18)
During October 2018, ANTAM's closing share price reached Rp680 per share, a 10% increase over October 2017 closing price of Rp645 per share. ANTAM's positive shares performance were also reflected on the daily average trading shares volume during January - October 2018 (10M18) which reached 76.22 million shares or an 84% increase over similar period of 2017 of 41.33 million shares. In 10M18, the daily average trading value reached Rp64.82 billion, a 109% increase over 10M17's value of Rp31.02 billion.
ANTAM's shares were actively traded in the IDX. By the end of October 2018, ANTAM's total investor reached 45,925 investors, a 23% increase compared to the total investors by the end of October 2017 of 37,269 investors. In 3Q18, ANTAM's shares are part of the MNC36 Index. ANTAM's shares also remains part of LQ45 Index, IDX30 Index, IDX Small-Mid Cap (SMC) Composite Index, IDX SMC Liquid Index, PEFINDO Investment Grade (i-Grade) Index, Jakarta Islamic Index as well as Kompas100 Index at the IDX which lists companies with the highest liquidity at the IDX.