PT International Nickel Indonesia Tbk (INCO recorded net earnings of US$218.8 million in the first half of 2010 or rose of 532.74% compared to US$34.58 million.
Sales revenues were US$619.2 million for the six months ended June 30, 2010, an increase of 124.3% compared to US$276,359 million.
INCO’s earnings jump driven by higher nickel in matte deliveries and increased average realized selling prices of nickel in matte.
In second quarter, INCO continued to focus on increasing the efficiency of its operations in order to pursue structural operating cost reductions. This effort included integrated business planning to identify efficiency improvements in some of our operations area, which resulted in cost savings in 2009.
Production of nickel in matte in 1H 38,031 metric tones of nickel with average prices US$16,281 per metric tones of nickel.
In a press release, INCO said, the Karebbe hydroelectric power generating plant project is continuing as planned. All engineering final designs have been completed, major procurement contracts have been awarded and the fabrication of equipment has also been completed.
Overall, the project was 60% completed at the end of the second quarter and is expected to come on line in the second half of 2011. This third hydrogenerating facility will produce enough energy to displace all existing thermal power to feed the electric furnaces at the Sorowako facility and is the main initiative in INCO’s energy cost reduction program.
Disclosure: No position at the stock mentioned above.