PT Inco doubles 2007 profits

IDX-listed nickel producer PT International Nickel Indonesia (Inco) booked a net profit of US$1.17 billion in 2007, a double surge compared to $513.4 million recorded in the previous year.

Inco said in an un-audited financial report in Jakarta Friday that the significant upsurge in the net profit was due to the sale increase of 74 percent to $2.32 billion compared to $1.34 billion in the same period of the previous year.

Inco produced 76,748 tons of nickel in matte last year or equivalent to 169.2 million pounds, the company?s historical output record high. The production volume also surpassed last year?s target of 74,843 tons (165 million pounds).

?The corporation recorded an incredible outputs even though our employees were on strike for 11 days in November 2007. We can make the achievement thanks to the increase in the nickel quality, the increase in the energy supply for power and the rise in the production efficiency,? Inco?s president director Arif S. Siregar said in Jakarta Friday.

The average selling price of nickel-in-matte last year was US$29,881 per ton compared with $18,356 the year before, he said.

Inco plans capital spending of $212 million in 2008 aimed at optimizing production and minimizing costs to take advantage of the current strong nickel price.

The company's output target of nickel-in-matte for 2008 is set at 77,000-79,000 metric tons, subject to adequate rainfall to fill the company's reservoirs during the remainder of the year.

Inco's major shareholders are CVRD Inco Ltd., with a 60.8% stake, and Sumitomo Metal Mining Co. Ltd., with a 20.1% stake. (godang)