PT Inco reports lower 2008 nickel production
Friday, February 20 2009 - 09:56 AM WIB
The loss was caused by lower nickel prices and high energy costs, the firm said in a statement on Friday.
Sales revenues stood at $180.0 million in the quarter ended December 31, 2008 compared to $458.5 million in the same quarter of 2007. EBITDA totalled $7.7 million, compared to $308.8 million.
The firm produced 17,300 metric tons of nickel in matte in the 2008 fourth quarter, compared to 18,600 metric tons in the corresponding period of 2007.
Realized price for nickel in matte averaged $10,675 per metric ton, a 55.2 per cent decrease from $23,817 per metric ton.
It consumed 628,984 barrels of high sulphur fuel oil at $93.72 per barrel in the 2008 fourth quarter period, compared to 629,943 barrels at $67.7 per barrel in the 2007 fourth quarter period.
The firm also consumed diesel, a total of 18,480 kiloliters in the fourth qurter of 2008, as against 40,422 kiloliters in the same period of 2007. The price of the fuel climbed to an average of $0.95 per liter, from $0.68 per liter.
Nickel in matte production in 2008 decreased 5.6 percent to 72,400 metric tons from 76,700 metric tons in 2007.
?The 2008 results were driven by lower margins on nickel in matte sold as a result of lower average selling prices and lower nickel in matte deliveries,? Inco?s president director Arif Siregar said.
?Our annual production in 2008 was below our initial plan of 77,000-to-79,000 metric tons as a result of the Company?s management decision to turn off all thermal power generators,? he added.
In 2008, the company?s realized price for nickel in matte averaged $17,724 per metric ton, a decrease of 40.7 per cent from $29,881 per metric ton in 2007. As a result, sales decreased 43.6 percent to $1,312.1 million in 2008 from $2,325.9 million in 2007.
The firm continues to work on its three major capital projects: Karebbe hydropower generation facilities, coal conversion, and electrostatic precipitators (ESP) in the Reduction Kilns.
"The first two projects have an objective of sustaining profitability in the long run. The ESP project is one of our commitments to improve our environmental performance at our Sorowako operations by reducing dust emissions and improving nickel recovery by processing recycled dust," Arif said.
The company plans to spend $228.8 million in capital expenditure in 2009. (denny)