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Jakarta Post

Timah aims to quadruple 2016 net profit

  • thejakartapost.com

    The Jakarta Post

Jakarta   /   Thu, April 7, 2016   /  08:14 pm
Timah aims to quadruple 2016 net profit Natural gift: Tin ore is loaded onto a truck at the PT Timah site in Sungailiat, Bangka Island. (JP/-)

State-owned tin mining company PT Timah hopes to quadruple its net profit in 2016 by optimizing downstream production and diversifying.

The company booked Rp 6.84 trillion (US$4.92 billion) in revenue and Rp 101.58 billion in net profit in 2015, a 84 percent decrease from its 2014 net profit of Rp 672.99 billion.

"We hope to book a rise of 300 percent in net profit this year, so we can get about Rp 400 billion. For revenue, we target to book Rp 8 to 9 trillion, but it depends on the price [of the products]," Timah corporate secretary Agung Nugroho said after an annual shareholders meeting in Central Jakarta on Thursday.

Timah decided to distribute Rp 30.47 billion in dividends, or Rp 4.1 per stock, comprising Rp 19.8 billion for the country and Rp 10.67 billion for the public, maintaining its dividend payout ratio of 30 percent.

In the first quarter of 2015, Timah distributed Rp 191.39 billion in dividends, or Rp 25.7 per stock, comprising Rp 124.4 billion for the state and Rp 66.98 billion for the public.

Last year, tin prices dropped to as low as US$13,000 per metric ton. However, the issuance of Trade Minister Regulation No. 33/2015 to tighten the tin export regulation has helped the price increase. It currently stands at $17,625 per metric ton.

Timah reported that its subsidiary, PT Timah Industri, had made progress on optimizing its new factories. A tin solder factory started operation in September 2015 with a capacity of 2,000 tons, while stannic chloride and methyl tin intermediate factories started operation early this year with a capacity of 500 and 8,000 tons, respectively, it said.

Timah plans to diversify its business by establishing several subsidiaries the property, health services and agribusiness sectors.

Timah has also started the development of thorium, which can be used as a medication or as power plant fuel. Timah director Purwijayanto said on Thursday that 1 ton of thorium could produce 1,000 megawatts of electricity in a year.

"Last year, diversification contributed to 5 percent of our revenue. This year, we hope it can contribute 10 to 15 percent. But it is not because of the drop in tin prices. We have been planning to diversify since 2012," Purwijayanto said. (vps/bbn)

 

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