PT Inalum Keeps High Profit and Shrinks Carried Forward Loss in F2008

An aluminium smelting joint venture between Japan and Indonesia, PT Indonesia Asahan Aluminium (PT Inalum), kept high level profit for fiscal 2008 ended in March 2009, announced by Japan Asahan Aluminium. PT Inalum posted record high financial results in fiscal 2007. Sales and profits in fiscal 2008 were lower than in fiscal 2007 but the recurring profit to sales rate stayed above 20%. PT Inalum’s carried-forward loss shrank to US$ 174 million at the end of fiscal 2008 from US$ 694 million at the end of fiscal 2007.

The annual revenue was US$ 552 million (approximately 54.2 billion yen) with recurring profit at US$ 112 million and net profit at US$ 70 million for fiscal 2008. The revenue decreased by 15.1% from fiscal 2007 while recurring profit was lower by 41.4% and net profit by 43.5%.

PT Inalum could gain favorable profit despite of sharp decline of primary aluminium ingot price. In fiscal 2008, 486 smelting furnaces were averagely in operation, increasing by 15 furnaces from fiscal 2007. Water level of Toba Lake rose to 905.1 meters at the end of fiscal 2007, which is the water source for PT Inalum’s electricity supply. PT Inalum’s ingot output was 246,000 tonnes and the sale was 249,000 tonnes. Both production and sale increased from fiscal 2007.

PT Inalum’s operation is expected to keep high level in fiscal 2009 despite of fluctuation of Toba Lake’s water level. The firm could gain recurring profit and net profit as high as fiscal 2008 if primary aluminium market price sustains the current level.