Slightly turnover, Profit Drops 54% XL fact to Rp 670 Billion

PT XL Axiata Tbk (EXCL) correction suffers 54% profit in the first half of 2013 to Rp 670 billion from Rp 1.46 trillion. The company’s revenue edged up 1%.

XL recorded net income of Rp 10.3 trillion in the first half of this year, from Rp 10.2 trillion in the previous position. The rise in revenue driven by increased data service revenues by 13%.

“Our performance this quarter marks our success to turn things around after a decline in the previous two quarters,” said President Director of XL Hasnul Suhaimi, in a press release on Thursday (01/08/2013).

Until the end of the first half of 2013, the XL has spent Rp 4 trillion for infrastructure investment in the data. A combination of internal funds and debt.

XL has signed a new loan agreement in U.S. dollars with Standard Chartered Bank in May 2013 for U.S. $ 50 million. Meanwhile, during the first half of this 2013 also, the amount of debt XL increased to Rp 17.1 trillion from Rp 12.7 trillion in the previous year.

“XL will remain focused on data services given the growing use of data rapidly increasing contribution to company revenues. During the first six months of this year, data revenue accounted for 22% of total revenue, compared to 19% last year, “he added.

EU industrial production fell in May.

Industrial production in the recession-hit eurozone fell 0.3 percent in May compared with the previous month, the data agency Eurostat reported Friday, after three consecutive monthly increases.

April industrial production rose 0.5 percent in the bloc’s 17 states, the agency said in a revised figures, compared to March when the rate increased 0.9 percent, AFP reported.

Numbers in April and March which is a great improvement on the performance in the previous months, and analysts said the latest report showed euro zone recession is already running 18 months may soon end.

May decrease was primarily due to the weakening 2.3 percent in the consumption of durable goods, while capital goods declined 1.5 percent.

On the positive side, energy production rose 0.1 percent, intermediate goods rose 0.4 percent and non-durable consumer goods rose 0.6 percent.

Decline in industrial output is highest in Ireland, which saw a decrease of 2.7 percent and in Greece with a 2.1 percent decline.

Output rose 6.1 percent on the other side of the recession plagued Portugal and 2.0 percent in Estonia. While in the 27 European Union countries, industrial output fell 0.6 percent in May compared to April.

Compared with the previous year’s data, industrial production fell 1.3 percent in the eurozone and 1.6 percent in the EU.

Freeport Papua Gold Production Drops

Production and sales of PT Freeport Indonesia copper plummeted in the second quarter of 2013. This, due to the collapse of an underground tunnel incident at the Grasberg mine in Papua in mid-May.

Reported by page FCX, Wednesday, July 24, 2013, Freeport posted sales of 158 million pounds of copper and 151 thousand ounces of gold, lower than the same period last year, in which Freeport managed to record sales of 183 million pounds of copper and 247 thousand gold.

However, in the first half of 2013, sales of Freeport is still higher. The US-based mining company managed to record sales of 356 million pounds of copper at an average price of U.S. $ 3.08 per pound. While the first half of 2012, Freeport sold only 317 million pounds of copper at an average price of U.S. $ 3.56 per pound.

Meanwhile, on the production side, Freeport in the second quarter of 2013 only produced 139 million pounds of copper and gold by 131 thousand thousand ounces. Much lower than the first quarter of 2012 gold production, which reached 173 million pounds of copper and 230 thousand ounces of gold.
In total, the company has produced copper as much as 358 million pounds of copper and 343 ounces of gold in the first half of 2013.

Meanwhile, the decline in production and sales of Freeport Indonesia due to the underground tunnel collapse incident that killed 28 people and left 10 people injured. Freeport immediately suspend mining activities in honor of the victims and investigate the cause of the collapse of the tunnel.

On June 24, 2013, Freeport re-open the mine open and operational on July 9, 2013, Freeport back underground mines operate consent Ministry of Energy and Mineral Resources. As of July 19, 2013, Freeport cultivate 200 thousand metric tons of ore per day.

Freeport Indonesia is currently being ramped up production of the DOZ underground mine. Now, the company has to process 40 thousand metric tons of ore per day and will be increased to 80 thousand metric tons of ore per day by mid-2014.

Freeport expects to sell 900 million pounds of copper and 1 million ounces of gold in 2013, an increase over 2012 and sales of 700 million pounds of copper and 900 thousand ounces of gold.

In addition, Freeport Indonesia has also started discussing bilateral discussions with the union wage increases. Hopefully, a new contract may apply in September 2013.