Padaeng Industry Plc (PDI) enjoyed favorable financial results in the first quarter of 2017, with net profits of Baht 313 million,  largely exceeding Baht 30 million in Q1 2016, strongly supported by favorable global zinc prices and local Thai metal premiums.

Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited, or PDI, disclosed that during the first quarter of 2017, ending March 31^st, the Company generated  Baht 1,517 million from sales and services, up 25%  from Baht 1,217 million from the same period last year . Its net profit stood at Baht 313 million, increasing Baht 282 million year-on-year from Baht 30 million.

Contributing to the sharp rise in its revenue and net profit in the first quarter of 2017, global zinc prices surged significantly to US$2,781 per ton on average, up 66% from US$1,676 per ton in the same quarter last year. Moreover, the Company realized Baht 59 million from the sales of its 35% stakes in Mae Sot Clean Energy Co., Ltd. and revenues from the energy business at Mae Ramat Solar Farm in Tak province.

Mr. Vanbellen added that if global zinc prices rise further to the range of US$2,800-2,900 per ton this year, it will benefit PDI’s zinc business and profits may reach a new record high this year.

“This year, PDI has a starting inventory of low-cost zinc ore of more than 30,000 tons from its mine in Tak’s Mae Sot district, from which we will certainly reap benefits due to the surging zinc prices. The Company will also generate additional revenues from its solar farm operations, which include its first solar farm in Japan with a capacity of 2.27 megawatt and the 6.30 megawatt Mae Ramat Solar Farm in Tak. Meanwhile, the Company’s second solar farm in Japan is being built with a capacity of 10.73 megawatt and is due to begin commercial operations in the second half of this year.” he said.

For Eco management and Recycling Material business, projects are under technical development and permits application process. PDI remains actively looking for projects with acceptable risks and substantial returns, in South East Asia and beyond, targeting area’s such as Energy, Eco and Materials. Other M&A targets, when encouraging, will also be considered.