JAKARTA - PT Cita Mineral Investindo Tbk (CITA) posted a net profit growth of 136% year on year (yoy) to Rp 331.5 billion in the first quarter of 2019. The bauxite and smelter grade alumina (SGA) company also recorded a net revenue hike of 93.8% yoy to Rp 894.5 billion in the period.
“Our positive achievement was driven by the acquisition of metallurgical grade bauxite (MGB) export quota amounting to 3.28 million tonnes for 2018-2019. With the acquisition, the company was able to export MGB in accordance with the government’s requirements,” CITA Director Yusak Lumba Pardede wrote in a press release received by IDNFinancials.com, Thusday (27/6).
In addition, Mr Pardede added, the company also sells MGB to PT Well Harvest Winning Alumina Refinery or WHW as raw materials for SGA. According to him, the policy will provide a lasting positive effect on the company’s revenue growth until the end of the year.
As well as MGB sales, another factor that supported CITA’s profit growth is WHW’s affiliate entity that has an SGA production capacity of 1 million tonnes per year. WHW is also the owner of Indonesia’s only SGA refinement plant.
“This will further strengthen WHW’s position as the pioneering supplier of SGA in the domestic market as well as supporting the growth of the national alumina industry. We also expect it to positively affect CITA’s performance in the coming years,” Mr Pardede concluded. (MS)