Inco's earnings triple

Inco's earnings triple

JAKARTA (JP): The unaudited net earnings of PT International Nickel Indonesia (PT Inco) tripled to US$25.8 million, or 10 cents per share, in the first quarter of this year, up from $8.7 million, or three cents per share, for the same period of last year.

The company reported Thursday that the increase in the net earnings was a result of higher nickel price realizations, which averaged $3.11 per pound in the January-March period.

The company's average realized prices in the first and fourth quarter of 1994 were $2.02 per pound and $2.43 per pound.

The company, which sells nickel in matte under long-term contracts, determines the selling price of its product by a formula based on the London Metal Exchange cash price for nickel.

Due to the mining of lower ore grades, however, the production of nickel in matte dropped from 25.4 million pounds (11,500 tons) in the first quarter of 1994 to 24.4 million pounds in the fourth quarter of 1994, and down further to 23.5 million pounds in the first quarter of 1995.

It announced two weeks ago its plans to increase its production capacity by 50 percent to 150 million pounds this year.(32)