Inco's profit jumps 37%

JAKARTA (JP): The publicly listed PT International Nickel Indonesia (Inco) saw its profit increase during this year's second quarter by 37.12 percent to US$18.1 million from $13.2 million in the corresponding period of last year.

The company said in a statement yesterday that the results for the second quarter of this year reflected higher prices and increased deliveries, which were partially offset by increased unit production costs.

According to the statement, the production cost increase, relative to the corresponding 1995 period, was largely attributable to higher oil costs and the increase of plant maintenance costs.

Production of nickel in matte during the second quarter was 25.6 million pounds at a net realized price averaging $2.84 per pound, compared to 25.5 million pounds at an average price of $2.62 per pound during the same period last year.

During the first half of this year, the company's net profit was recorded at $39.5 million, or 16 cents per share, compared with $39 million or 16 cents per share, in the corresponding period of last year.

Production of nickel in matte during the first half of this year was recorded at 50.7 million pounds at an average price of $2.84 per pound, against 49.0 million pounds with an average price of $2.89 per pound for the corresponding 1995 period.

The selling price of the company's nickel in matte, an intermediate product which is sold under long term contracts, is determined by a formula which is based on the London Metal Exchange cash price. (13)