Inco's earnings surge on higher price and higher sales

JAKARTA (JP): Publicly listed nickel mine operator PT International Nickel Indonesia (Inco) booked a sharp increase in net earnings to US$80.5 million or 32 cents per share in 2000 from $21.3 million or nine cents the previous year.

In its audited financial report for 2000, the company said that net earnings for the fourth quarter of last year dropped to $16.9 million or nine cents per share from $17.8 million or seven cent per share in the same period of 1999.

The company's president Rumengan Musu said that the sharp increase in the earnings for 2000 was attributed to a higher production and higher sales.

Musu said that the higher profit for 2000 also resulted from the high price realizations particularly in the first part of the year and significantly higher deliveries.

"Despite our good results, nickel prices have softened recently and oil prices remain high," he said in a statement.

Musu said that the slight fall in net earnings in the fourth quarter of 2000, relative to the corresponding 1999 period, was due to significantly higher oil prices.

Production of nickel in matte (crude) for the fourth quarter of 2000 was 15,800 tons, compared with 14,200 tons in the corresponding 1999 period.

For the year 2000, the production of nickel in matte was 59,200 tons compared with 45,400 tons for the year 1999.

"Although our annual production in 2000 was 30 percent above the rate achieved in 1999, it was slightly lower than our initial target," Musu said.

The company's realized price for nickel in matte averaged $6,089 per ton in the fourth quarter of 2000, compared with $6,384 per ton in the third quarter and $5,826 per ton in the fourth quarter of 1999.

For the year 2000 as a whole, the company's realized price averaged $6,744 per ton, compared with $4,588 per ton in the year 1999.(hen)