PT Inco's net profit plummets 74.5 percent
PT Inco's net profit plummets 74.5 percent
JAKARTA (JP): Publicly listed nickel producer PT International
Nickel Indonesia (Inco) said on Friday its net profit had dropped
by 74.5 percent to US$6.2 million in 1998 from $24.3 million in
1997.
Company president director Rumengan Musu said on Friday that
the drop in profits was caused by the depressed price of nickel
in the world market.
"The year 1998 was a very difficult year for the nickel
industry. The cash price of nickel on the London Metal Exchange
fell 54 percent from March 1997 to the end of last year due to
the economic weakness in Asia and concerns about the short-term
nickel supply-demand outlook," he said.
"Despite the very difficult market situation, Inco still
gained profit last year," he said in a statement.
Musu said the company, which is operating a nickel mine in
Soroako, Southeast Sulawesi, suffered a loss of $3.7 million in
the fourth quarter of last year, compared to the loss of $1.1
million it suffered in the corresponding period of 1997.
He said the price for nickel in matte averaged $4,034 per ton
or $1.83 per pound in 1998 and $3,461 per ton or $1.57 per pound
in the fourth quarter of 1998.
In comparison, price for nickel in matte averaged $5,512 per
ton or $2.5 per pound in 1997 and $5,071 per ton or $2.30 per
pound in the fourth quarter of 1997.
Inco's nickel output reached 35,500 tons in 1998 and 8,600
tons in the fourth quarter of the year, compared to 32,000 tons
for 1997 and 3,900 tons in the same period of 1997.
Musu said the company had almost completed construction of its
new production facilities, with the aim of increasing its annual
output by 50 percent to 68,000 tons of nickel in matte in 2000.
Construction of the new processing facilities was to be
completed in the first quarter of 1998 and the new hydroelectric
facilities were expected to be finished in the second quarter of
this year.
Musu said Inco expected to increase its nickel output to
38,000 tons this year, but this target would be dependent on the
amount of rainfall this year. (jsk)