Inco earns $5.2 million in first quarter<\/p>\n
JAKARTA (JP): Nickel producer PT International Nickel
\nIndonesia (Inco) announced unaudited earnings of $5.2
\nmillion for the first quarter of 1998, compared to $7.1 million
\nfor the first quarter of 1997.<\/p>\n
The company said the decrease in net earnings for the first
\nquarter of 1998 was due to lower nickel price realizations,
\npartially offset by higher deliveries and reduced production
\ncosts, the company said in a statement.<\/p>\n
Inco suffered a loss of US$1.1 million for the fourth quarter
\nof last year.<\/p>\n
The improvement seen between the last quarter of last year and
\nthe first quarter of 1998 was due to higher deliveries, partially
\noffset by lower price realization, it said.<\/p>\n
The realized price for matte nickel averaged $2.09 per pound
\nin the first quarter of 1998, compared to $2.59 per pound in the
\ncorresponding period last year. US$2.30 per pound was achieved in
\nthe fourth quarter of 1997.<\/p>\n
Production of matte nickel in the first quarter of 1998 was
\n20.1 million pounds, compared to 17.7 million pounds for the same
\nperiod in 1997, and 8.6 million pounds in the fourth quarter of
\nlast year.<\/p>\n
Production in the first quarter of 1997 was affected by the
\nrenovation of one of the company's three electric furnaces.<\/p>\n
In the first quarter of 1998, all processing facilities were
\navailable but production was constrained by the availability of
\nelectric power. The company receives its electricity from a
\nhydroelectric generator which is currently unable to operate at
\nfull capacity because of low water levels in the Soroako project
\narea, the company explained.<\/p>\n
However, the adverse effect of subnormal rainfall caused by
\nthe El Nio weather phenomenon has been mitigated by the benefits
\nof a project to increase the flow of water to the company's
\nhydroelectric facilities during periods of low rainfall, which
\nwas completed last December.<\/p>\n
\"Company production was approximately 75 percent of capacity
\nin the first quarter of 1998,\" the company said.<\/p>\n
The company's long term debt increased by 32.2 percent to
\n$322.7 million at the end of March this year, reflecting draw-
\ndowns from available credit facilities to finance a project to
\nincrease the annual production capacity by 50 percent.<\/p>\n
\"The project remains within its budget and on schedule,\" the
\ncompany said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inco-earns-52-million-in-first-quarter-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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