Masan resources net rises 52 per cent in 2016

Masan Resources Corporation (HNX-UpCOM: MSR), one of Viet Nam’s largest integrated resources producers and chemical processors, reported net revenues of VND4.049 trillion (US$179.15 million) last year, a year-on-year increase of 52 per cent. — Photo cafef.vn

Its output was fully sold and order book continued to be full following long-term sales arrangements with strategic customers.

The company’s EBITDA (earnings before interest, taxation, depreciation and amortization excludes other income and other expenses) increased 66 per cent last year thanks to its cost restructure.

Its Nui Phao project is in the lowest quartile for cash costs in the global tungsten industry, solidifying its position as a reliable supplier in any pricing environment.

Besides, the ability to reduce cash costs while increasing overall productivity has allowed MSR to report profits of VND110 billion last year despite falling by 28 per cent from 2015 due to lower prices.

Tungsten prices stabilised in the first half of 2016 but have since been range bound between $180/mtu and $215/mtu. With demand growth needing a catalyst to push prices higher, market participants are turning to the oil and gas sector, previously one of the hardest hit tungsten end-use markets.

Advocates of a pricing increase are pointing to a potential recovery in drilling activities on account of OPEC’s agreement to cut oil production.

The company said productivity initiatives, which have increased efficiency, have enabled it to further leverage its low cost base to capture additional market share in an environment where others are struggling.

Productivity initiatives commissioned last year resulted in output increasing by 37 per cent in the second half, with fluorspar and tungsten production increasing by 31 per cent and 62 per cent. — VNS