PT Inalum Posts Record Sales and Profits in F2005

The aluminium smelting joint venture between Japan and Indonesia, PT Indonesia Asahan Aluminium (PT Inalum) posted record net sales and net profit with secondly highest recurring profit in fiscal 2005 ended March 2006, announced by Japan Asahan Aluminium on Wednesday. The JV achieved higher sales and profits in fiscal 2005 than fiscal 2004 thanks to continuous full operation and surging price of primary aluminium ingot.The JV could keep full operation through fiscal 2005 when the water level of Toba Lake was stably high at average 903.81 meters, which is the water source for the electricity supply. The JV had operated average 503 electrolytic furnaces in the year, almost the same level as fiscal 2004.The annual output of aluminium ingot increased by 2% to record 252,000 tonnes in fiscal 2005 from fiscal 2004 and the sales also increased by 3.3% to 248,000 tonnes. The averaged selling price rose to US$ 2,030 per tonne in the year. Then the JV posted US$ 503 million of net sales in fiscal 2005, increasing by 17% from fiscal 2004, US$ 120 million of recurring profit, increasing by 31.9%, and US$ 157 million of net profit, increasing by 36.5%.The JV currently maintains high operation and is expected to keep the production volume in fiscal 2006 almost as same as fiscal 2005. In addition the JV seems to post even higher profits in fiscal 2006 than fiscal 2005 if the primary aluminium ingot price keeps the recent high level.