INCO doubles net profits in 2004<\/p>\n
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta<\/p>\n
PT International Nickel Indonesia (INCO) doubled its net profit
\nin 2004 as higher nickel prices and record-setting production
\nboosted sales, company president and chief executive Bing Tobing
\nsays.<\/p>\n
Net profits rose US$265.1 million in 2004, from $104.2 million
\nthe year before, supported by a 56 percent jump in sales revenues
\nfrom $509 million in 2003 to $792.1 million.<\/p>\n
The sharp increase in sales was attributable to higher nickel
\nprices and a boost in production. The publicly listed company
\nproduced 159.1 million pounds of nickel in 2004 -- the highest
\never for the firm -- up from 154.8 million pounds the previous
\nyear.<\/p>\n
\"The production of 159 million pounds of nickel in matte was
\nthe highest in our history and we are targeting an equally strong
\noutput of 160 million pounds in 2005,\" Bing said.<\/p>\n
As for the prices, nickel in 2004 averaged at $10,766 a ton,
\nor $4.88 a pound, up 51 percent from an average of $7,117 per
\nton, or $3.23 per pound, in 2003 based on the benchmark prices at
\nthe London Metal Exchange.<\/p>\n
PT INCO is one of the largest nickel producer in Indonesia,
\nwith 61 percent of its shares owned by Canada-based Inco Ltd.,
\nthe world's second-largest nickel producer.<\/p>\n
In the longer term, the company plans to boost its production
\nto 200 million pounds by 2009, and to achieve that, the firm
\nwould develop another hydropower plant at Karabbe on the Larona
\nriver in Southeast Sulawesi.<\/p>\n
The dam is worth $150 million in investment, and a preliminary
\nsurvey surrounding the areas was already underway.<\/p>\n
The company, which operates the nickel mine in Sorowako of
\nSoutheast Sulawesi and is currently exploring another mine at
\nBahudopi in Central Sulawesi, has two dams to support the
\nexisting production process.<\/p>\n
In total, it has a nickel mining license covering 218,000
\nhectares in South Sulawesi, Southeast Sulawesi and Central
\nSulawesi.<\/p>\n
\"We are still considering several measures to finance the
\nconstruction. It can be from our own financial resources, issuing
\nbonds, or seeking loans from financial institutions,\" Bing said.<\/p>\n
With the sound financial showing, the company is facing a
\nbright outlook in fulfilling its debts commitments, before
\nembarking on business expansion afterwards.<\/p>\n
\"We have an outstanding debt amounting to $115.4 million,
\nwhich is slated to be repaid by March next year, and the company
\nwill have by then the ability to expand in a prudent manner,\"
\nBing said.<\/p>\n
In 2004, it repaid about $77 million in maturing debts.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/inco-doubles-net-profits-in-2004-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }