PT Inco sees jump in second quarter unaudited net earnings
PT Inco sees jump in second quarter unaudited net earnings
JAKARTA (JP): Publicly listed PT International Nickel
Indonesia (Inco) announced on Friday unaudited net earnings of
US$29.2 million in the second quarter of 2000, or 12 cents per
share, up from $4.1 million (2 cents per share) a year earlier.
Net earnings for the first half of 2000 were $47.3 million, or
19 cents per share, compared to $2 million (one cent per share)
in the corresponding period in 1999, Inco said in a statement.
The Canadian mining company, which operates a huge nickel
mining and smelting operation in Soroako, South Sulawesi,
attributed the increased earnings to higher realizations of
nickel price and deliveries, which was partially offset by
increased production costs caused by the rise of fuel prices.
"Results would have been better were it not for higher fuel
prices and some minor production problems which resulted in
deliveries below expected levels," Inco president and chief
executive officer Rumengan Musu said.
Inco's realized price of nickel-in-matte averaged $7,871 per
ton in the second quarter of 2000, compared to $4,122 a year
earlier, and $6,775 in the first quarter of 2000.
Production of nickel-in-matte for the second quarter was
13,779 tons, up from 10,700 tons a year earlier, and from 13,600
tons for the first quarter of 2000.
Production in the second quarter was affected by a change in
the ore chemistry which had cut back smelting efficiency and
resulted in unplanned repairs to the refractory liner in two of
the original reduction kilns.
The loss of production was estimated at 1,627 tons.
"The production problems have now been rectified and we expect
increased production in the second half of the year," Musu said,
adding that he was optimistic despite indications of a weakening
of nickel prices.
Cash provided by Inco's operating activities, before capital
expenditures, was $58.3 million in the first half of 2000,
including $12 million in the second quarter. This is an increase
from $25.2 million in the first half of 1999.
Capital expenditure in the first half of 2000 was $9.2
million, down from $94.8 million a year earlier reflecting the
completion of the company's expansion project at the end of 1999.
Cash provided by operating activities was sufficient to
finance debt repayments totaling $47.8 million for the first half
of 2000. (10)