Inco reports strong profit

The Jakarta Post , Jakarta | Fri, 04/02/2004 2:23 PM | Business

The Jakarta Post, Jakarta

Publicly listed nickel mining company PT International Nickel Indonesia (PT Inco) posted a record 2003 net profit on the back of higher output and a strong commodity price.

The company said on Thursday that net profit last year more than tripled to US$104.19 million compared to $30.28 million in the previous year.

Sales jumped to $509.03 million from $321 million, it said. The company produced 155 million pounds of nickel in matte form last year, up from 131 million pounds in 2002.

Inco enjoyed strong nickel price last year amid robust global demand and limited supply, with realized average price of nickel at $3.23 per pound, compared to $2.32 per pound average in the previous year.

Inco president Bing R. Tobing said the nickel price was expected to remain strong this year driven by strong demand from industries in China, Taiwan and South Korea.

He said the company planned to boost nickel output this year to around 160 million pounds.

""Demand for nickel in the world market is high. We will take advantage of the high demand by boosting our production,"" Tobing said after a shareholders meeting on Thursday.

Tobing said improved mining and blending methods would help push production higher.

The Indonesian unit of Canada-based Inco manages some 218,000 hectares of nickel mining areas in South Sulawesi, Southeast Sulawesi and Central Sulawesi.

Elsewhere, Tobing said the company was intensifying exploration works to increase its proven reserves. As of December 2003, Inco's proven nickel ore reserves totaled 62 million tons, while probable reserves reached 45 million tons.

Inco is exploring new nickel reserves in Petea in Southeast Sulawesi and Mahalona in South Sulawesi. For developing the Petea mines, the company plans to invest $31 million this year.

Inco also plans to fully repay its $192 million long term debts by 2006. Last year the company paid some $77 million plus $7 million in interest.

Tobing also said the company was considering a stock split to increase liquidity of its shares on the Jakarta Stock Exchange. However, the company have yet to make any decision on the issue.

Inco shares were closed lower on Thursday at Rp 42,100, compared to Rp 45,000 in the previous day.

The company's shareholders meeting approved a final dividend for 2003 of 50 U.S. cents per share.

Inco Indonesia, which started exploration in 1968, is 58.73 percent owned by Canada's Inco Ltd, Sumitomo Metal Industries Ltd. (20.09 percent), and public investors the remainder.

Comments (0) | Post comment

A | A | A |