PT Inco more than tripples first half earnings
Friday, July 23 2004 - 03:07 AM WIB
Publicly-listed nickel producer PT International Nickel Indonesia (PT Inco) announced on Friday that unaudited net earnings in the first half ending June 30 more than trippled to US$126 million from $36.8 million in the same period of last year.
Net earnings in the second quarter increased by 141 percent to $52.6 million from $21.8 million in the same quarter last year
"Once again strong nickel prices enhanced our earnings," said company president Bing R. Tobing.
He said that PT Inco's average realized price in the current quarter of 2004 rose 52 per cent from the second quarter 2003 level, but softened 16 per cent from the first quarter of this year.
But production in the second quarter of 2004 climbed to an annualized rate of 165 million pounds of nickel in matte, up from an annualized 144 million pounds in the first quarter, putting PT Inco on course to achieve its production forecast of 160 million pounds of nickel in matte for the year.
"We also generated another $31 million of cash, despite lower nickel prices than in the first quarter of the year -- and we are on track to meet our next scheduled long-term debt repayment on Sept. 30, 2004," Bing said.
Elsewhere, Bing said that the company's plans to generate an additional 10 megawatts of power to boost production are proceeding well.
He said that the necessary equipment should be in place in the fourth quarter of 2004, with the project expected to be on-line at the beginning of 2005.
"Moreover, we are currently conducting a feasibility study regarding the building of a third dam, which would raise our hydroelectric power-generating capacity by about 90 megawatts to 365 megawatts," Bing said.
The company also welcomed the recent decision to allow 13 mining firms (including PT Inco) to resume operation in protected forest.
"This removes a barrier for foreign investment and should facilitate our decision on whether to build a new dam."
"We believe that a third dam could raise PT Inco's hydroelectric generating capacity to support annual production of 200 million pounds of nickel in matte by 2009," Bing added.(*)