PT Inco?s Q4 net profit soars on higher metal price

Publicly listed nickel miner PT International Nickel Indonesia Tbk (Inco) announced on Thursday that its fourth quarter unaudited net profits soared 368.3 percent due to higher nickel price.

Unaudited net profits were US$265.5 million in fourth quarter of 2006, up from restated profit of $56.7 million in the same quarter 2005. Sales rose to $589.6 million, Inco said in statement.

?Inco achieved record fourth quarter production of 46.8 million pounds of nickel in matte. We reached this milestone as a result of improved production efficiencies partially recovering some production lost due to the transformer fire in May, and despite lower rainfall during the last quarter of 2006.? Inco president and chief executive officer Arif Siregar said.

In the 2006 fourth quarter, nickel in matte production reached at 21,237 tons (46.8 million pounds) compared to 20,743 tons (45.7 million pounds) in the corresponding 2005 period. Production for 2006 was 71,700 tons (157.9 million pounds) decreased compare to 76,400 tons (168.4 million pounds) in 2005, the company said

Meanwhile, Inco?s full-year net profit climbed 91.7 percent to $513.4 million from $267.8 million. Sales increased 51.1 percent to $1,337.7 million.

Total production in 2006 is 157.9 million pounds of nickel in matte.

The company expected to produce 155-to-165 million pounds of nickel in matte this year, it said. (denny)