Inco profit surges almost 500%

JAKARTA: PT International Nickel Indonesia (Inco), a local unit of the world's second-largest nickel producer, Inco Ltd., said its first-quarter profit skyrocketed by almost 500 percent on higher nickel demand and prices.

In a media statement on Thursday, Inco said that profit in the first quarter jumped to US$73.4 million from $15 million in the same period last year.

"The strong rise in nickel prices enhanced earnings as Inco's average realized price in the first quarter rose 87 percent from the same period in 2003 and 35 percent from the fourth quarter of 2003," said Inco chief executive officer Bing R. Tobing.

The company has benefited from a high nickel demand from China and the United States, amid a limited supply of the product on the market. Global demand this year is estimated to reach around 1.34 million metric tons, while the available supply is only about 75,000 metric tons.

Inco shares on the Jakarta Stock Exchange surged by Rp 1,100 to Rp 36,700 on Friday's trading. -- JP