Higher price of zinc gives boost to Padaeng
Padaeng Industry Plc, the major zinc producer in the Southeast Asia, last week announced a consolidated second-quarter net profit of Bt555 million, equivalent to earnings of Bt2.46 per share.
This was a rise from the Bt198-million made in the same period last year. The result was in line with the first quarter, with a 10-per-cent increase in sales in the local market and negligible exports due to a lack of raw materials, resulting in a somewhat lower total sales volume than for last year. In the first half of this year, Padaeng Industry saw a consolidated net profit of Bt1.011 billion, or earnings of Bt4.47 per share, compared with a net profit of Bt333 million and earnings of Bt1.47 per share for the same period last year, a substantial increase of 204 per cent. The company's consolidated statement of income showed total sales from revenues and services of Bt4.8 billion, up Bt1.69 million, or 54 per cent, from last year. The company benefited largely from the higher price of zinc, which averaged US$2,767 (Bt103,000) per tonne, up 114 per cent from the same period last year. In this year's second quarter, zinc rose dramatically to an average of $3,292 per tonne, compared with $1,273 for the same period last year. In the first half of this year, local market demand increased 3.1 per cent year on year, with consumption of alloy metals up 8 per cent, mainly for continuous galvanising. Demand for zinc metal increased just under 1 per cent.
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