PT Inco?s profit slumps on lower price, output
Thursday, August 7 2008 - 05:33 AM WIB
The significantly reduced net profit caused by the fall in nickel prices from an all-time high in the second quarter of 2007, a temporary reduction in our nickel output and high oil prices, the company said in statement.
?As expected, lower production in the second quarter of 2008 resulted from the rescheduling of our planned shutdown from first quarter to second quarter of 2008 along with unplanned equipment repairs.? the company?s president director Arif Siregar said.
Despite production losses, Inco is maintaining its production forecast for 2008 of 77,000-to-79,000 metric tons, he said
Production of nickel in matte in the second quarter of 2008 decreased to 17,015 metric tons from 21,072 metric tons in the same quarter of 2007 and It sold 19,264 tons of the metal in the quarter, compared to 21,713 tons in the same quarter last year.
The company?s realized price for nickel in matte averaged $22,477 per metric ton during the quarter, compared with $38,926 per metric ton in the corresponding 2007 period.
Unit cash cost of production in the second quarter of 2008 increased 36.7 percent to $9,934 per ton from $7,269 per ton in the same period last year. The increase in unit cash costs primarily resulted from rising energy related costs; higher price of high sulphur fuel oil (HSFO), and the use of greater amounts of more expensive diesel fuel, it added.
Meanwhile, sales revenues of $439.2 million in the quarter ended June 30, 2008 compared to $859.0 million in the same quarter of 2007. Operating profit in the quarter reached $219.8 million, with an operational margin of 50 percent.
PT.Inco, which operates nickel mine in South Sulawesi is a subsidiary of Brazillian mining giant Vale Inco. (denny)