PT Inco Q3 net profit down by 23% due to lower selling price
Friday, October 29 2010 - 02:43 AM WIB
Profit in the third quarter was impacted by a 12.9 percent lower average realized selling price for nickel in matte and higher prices of consumables, as compared to the previous quarter, the company said in statement
Sales revenue was $327.9 million for the three months ended Sept. 30, 2010, down 9.8 percent compared to $363.6 million in previous quarter.
Deliveries totalled 20,725 metric tons compared to 20,010 metric tons in 2Q10 an increase of 3.6%; however, the average realized price for nickel in matte of $15,822 per metric ton during 3Q10 compared to $18,172 per metric ton 2Q10, decreased by 12.9%.
Production of nickel in matte in 3Q10 increased 10% to 19,998 metric tons from 18,184 metric tons in 2Q10. For Jan-Sept period of 2010 production of nickel in matte is also increase to 57,993 metric tons from 50,300 metric ton in the same period of last year.
This output is the fifth best quarterly production result in the company?s history and it was recorded under an energy-efficient mode of operations. In addition, the company took advantage of the wet season by supplying the auxiliaries grid excess power from the company?s hydrogenerating facilities, it said.
The company?s total cost of goods sold in 3Q10 increased to $172.5 million from $162.5 million in 2Q10 primarily due to the 3.6% increase in deliveries of nickel in matte.
Inco consumed 16,339 kilolitres of diesel fuel at an average cost of $0.62 per litre in 3Q10 compared to 22,347 kilolitres at an average cost of $0.60 per litre in 2Q10. In addition, the company used 700,094 barrels of high sulphur fuel oil (HSFO) at an average cost of $73.59 per barrel compared to 656,605 barrels at an average cost of $76.79 per barrel in the previous quarter. (denny)