JAKARTA - PT Vale Indonesia Tbk and its subsidiary announced the achievement of financial performance for 2022.
Vale recorded a net profit of USD 200.4 million or approximately IDR 3.09 trillion.
The profit was recorded to have increased by 20.87 percent from 165.79 million or equivalent to Rp. 2.51 trillion in the previous year.
Vale also managed to book EBITDA of US$477 million in 2022 driven by a higher price of nickel realization.
The average realization price in 2022 is 35 percent higher than last year's price.
"This higher price certainly has a positive impact on our financial performance," said CEO and President Director Vale Febriany Eddy in a statement to the media, Friday, February 17.
With a significant increase in commodity prices in 2022, the company is still able to maintain cash costs in the range of 11,000 US dollars per ton.
The Group recorded sales of 1,179.4 million US dollars in 2022, 24 percent higher than sales recorded in 2021 worth USD 953.2 million due to higher average realization prices.
The average realized price of nickel shipments in fire deposits is USD 19.348 per tonne, higher than the level in 2021 of 14.309 US dollars per tonne.
Group's cost of revenue in 2022 amounted to $865.9 million, an increase of 23 percent from $774.3 million in 2021.
The main causes of the increase in the cost of revenue are higher fuel and coal prices.
PT Vale's production in 2022 is 60,090 metric tons of nickel infeasible, 8 percent lower than production in 2021 mainly due to the implementation of the Tanur 4 Restructuring project.
"Since the project has been completed, Vale Indonesia is optimistic that it can reach a higher production volume by 2023 while at the same time trying to increase productivity and operational cost efficiency," continued Febriany.
HSFO consumption in 2022 will increase when compared to 2021, offsetting lower coal consumption.
Vale Indonesia has decided to use HSFO as an energy source in operation since September 2022, responding to a sharp increase in coal prices.
Meanwhile, diesel consumption in 2022 will decrease when compared to 2021.
Compared to 2021, the average price of HSFO, diesel and coal in 2022 will increase significantly by 44 percent, 74 percent and 136 percent, respectively.
Group cash and cash equivalents on December 31, 2022, and December 31, 2021, respectively, amounted to US $ 634.0 million and US $ 508.3 million as the Group received higher revenue in 2022.
"The company will always be careful in controlling expenses to maintain cash availability," he added.
PT Vale spent about US$218.8 million on capital expenditures in 2022, an increase from what was issued in 2021 worth US$80.7 million mainly due to higher spending on growth continuity and capital in 2022.
The main expenditure is for the Prosperous Restructuring 4 project.
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