JAKARTA - PT Kapuas Prima Coal Tbk (ZINC), an issuer that produces basic metals in Indonesia, is optimistic that it will be able to boost revenue by 2023. This optimism is in line with the Company's efforts to continue to pursue the operation of the mutual concentrate smelter plant with a capacity of 40,000 tons which is being built, by the end of this year.
Kapuas Prima Coal Director kioeenyusut said the global economy due to the prolonged Russia-Ukraine war had made 2022 full of challenges. Therefore, the company will focus on increasing sales next year.
In addition to the lead-concentrat smelter being pursued to operate later this year, ZINC is also building a zinc smelter plant with a capacity of 83,000 tons of zinc concentrate which is expected to operate in 2023.
"This year, many variables are beyond our control which greatly affect the Company's performance, such as rising energy prices, recession and global economic shrinkage, as well as rising inflation rates. For this reason, we will focus efforts to increase revenue and performance efficiency in 2023," said Mikhae in his statement, Friday, December 2.
In the third quarter of 2022, the company posted a net profit of IDR 12.95 billion, down 80 percent from IDR 65.45 billion in the same period in 2021. The decline in net profit occurred because the Company's sales fell 11 percent to IDR 551.81 billion from IDR 612.59 billion in the previous period.
One of the reasons for the decline in the Company's sales and net profit was commodity prices which tended to fall due to an increase in interest rates from the United States. In addition, there is also a significant increase in costs due to the increase in industrial diesel prices, which has increased by 100 percent.
Heavy terrain requires a consistent supply of fuel and soaring prices since the beginning of the year have significantly eroded the Company's performance.
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