Vale Indonesia (INCO) Records Profit Growth; Prospects Examined for 2026

PT Vale Indonesia Tbk (INCO) recorded impressive performance throughout 2025. Based on its financial report results, INCO achieved revenue of US$990.19 million in 2025, up 4.18% compared to US$950.38 million in the same period the previous year. In line with this, cost of goods sold also increased to US$879.34 million from US$842.16 million previously.

From an operational perspective, operating expenses increased significantly to US$52.18 million compared to US$38.25 million previously. Additionally, other expenses rose to US$12.71 million from US$9.87 million. Meanwhile, other income increased slightly to US$3.92 million from US$3.72 million.

However, bottom-line performance showed strong improvement. This was supported by several non-operational items, including gains from fair value recognition of derivative assets that reversed to positive at US$16.57 million from a previous loss of US$19.94 million. Additionally, financial income increased to US$37.26 million from US$36.2 million.

INCO also recorded gains from fair value recognition of equity investments of US$6.68 million and profit contributions from associated entities of US$607,000. With these various factors, INCO’s pre-tax profit increased to US$94.53 million from US$74.06 million previously. After deducting income tax expense of US$18.47 million, INCO’s net profit for the year reached US$76.06 million, surging 31.68% from US$57.76 million in the previous period.

INCO President Director Bernardus Irmanto said operational performance throughout last year grew quite well. Nickel matte production, for instance, reached 72,027 metric tonnes throughout 2025, up from 71,311 tonnes in 2024.

On a quarterly basis, production in the fourth quarter of 2025 saw INCO record nickel matte production of 17,052 tonnes, approximately 12% lower than 19,391 tonnes in the third quarter of 2025. This decline was caused by Furnace 3 reconstruction activities that began in November and are targeted for completion in May 2026. Compared to the fourth quarter of 2024, when production reached 18,528 tonnes, fourth quarter 2025 production was slightly lower, but overall annual production remained higher than the previous year.

“These results reflect the company’s continued commitment to maintaining operational reliability and managing production efficiently throughout the year,” said Bernardus in an official statement on Monday (16 March 2026).

Nickel matte shipments from Vale also recorded moderate increases in 2025, reaching 73,093 tonnes compared to 72,625 tonnes in 2024. This enabled Vale to maintain solid EBITDA of US$228.2 million throughout last year, slightly higher than the previous year.

The average realised price of nickel matte in 2025 was recorded at US$12,157 per tonne, down 7% compared to US$13,086 per tonne the previous year. Despite being in a weaker price environment, the increase in nickel matte payability rates that began in July last year, along with higher shipment volumes, drove the increase in total revenue.

On a quarterly basis, revenue reached US$284.8 million, up 2% compared to the previous quarter, driven by moderate recovery in nickel prices.

“This reaffirms the company’s strong commitment together with shareholders in facing challenging market conditions as well as confidence in the long-term prospects of the industry,” said Bernardus.

On the cost side, although INCO had carried out major maintenance on one of the furnaces and managed to maintain a competitive cash cost per unit of US$9,339 per tonne in 2025, slightly lower than US$9,374 per tonne the previous year. This improvement reflects strong cost discipline and resulted in the lowest annual cash cost rate in the past four years, down from approximately US$11,201 per tonne in 2022.

This figure reflects ore sourced entirely from the Bahodopi block, as sales from the Pomalaa block remain limited to bulk sampling test activities. Full mining activities at Pomalaa are estimated to begin in 2026.

Vale Indonesia also reported that net profit increased 32% annually to US$76.1 million, reflecting consistent operational improvements, stronger production levels, and a disciplined approach to cost efficiency.

In the fourth quarter last year, consumption of HSFO, diesel, and coal declined in line with lower production volumes as Furnace 3 reconstruction began, aimed at maintaining future production capacity and ensuring operational safety. During that quarter, HSFO prices fell 4%, while diesel and coal prices respectively experienced moderate increases of 6% and 1%.

Throughout the year, Vale Indonesia allocated approximately US$485.9 million for capital expenditure, up 46% compared to US$332.1 million the previous year. This increase mainly reflected spending for development projects and sustaining capital requirements.

Moving forward, Bernardus mentioned INCO is sharpening its strategic focus through the development of mining projects and downstream processing facilities in partnership with joint venture partners. Specifically at Pomalaa, the company’s mining project has achieved approximately 60% progress, with several support facilities for the initial operational phase successfully completed.

This development aligns with the progress of the HPAL project, which has achieved approximately 50% of the construction stage and recorded an important milestone with the arrival of four autoclave units and the installation of the first unit. This project remains on track to achieve first mechanical completion in the third quarter of 2026.