PT International Nickel Indonesia Tbk (“PTI”, or the “Company”, IDX: INCO) announces unaudited result for 4Q10. PTI recorded net earnings of US$108.9 million (US$0.011 per share) in 4Q10, in line with 3Q10 result of US$109.7 million (US$0.011 per share).
Sales revenue was US$329.2 million for the three months ended on December 31, 2010, slight increase from US$327.9 million in 3Q10. In 4Q10, the average realized price for nickel matte was US$18,011 per metric ton, an increase of 13.8% compared to US$15,822 per metric ton during 3Q10. However, the nickel matte deliveries in 4Q10 were 18,280 metric tons compared to 20,725 metric tons in 3Q10, a decrease of 11.8%.
Production of nickel in matte in 4Q10 was 17,996 metric tons compared to 19,998 metric tons in 3Q10, a decrease of 10.0% mainly because of production impacts due to scheduled furnace#4 roof repair to improve its life time and partial reline of reduction kiln #3 and #4 but partially offset by higher nickel contained in the calcine.
The Company’s total cost of goods sold in 4Q10 decreased to US$166.8 million from US$172.5 million in 3Q10, primarily due to an 11.8% decrease in deliveries of nickel matte. The 4Q10 cost of goods sold per metric ton increased by 10% largely due to higher supplies and service and contract commitments related with the furnace#4 roof repair and partial reline of reduction kiln#3 and #4. PTI consumed 21,127 kilolitres of diesel fuel at an average cost of US$0.68 per litre in 4Q10 compared to 16,339 kilolitres at an average cost of US$0.62 per litre in 3Q10. In addition, the Company used 675,618 barrels of HSFO at an average cost of US$74.7 per barrel compared to 700,094 barrels at an average cost of US$73.6 per barrel in 3Q10. PTI continues to utilize hydro power generators, given sufficient water levels in its main catchment area.
The Karebbe hydroelectric power generating plant project is continuing as planned. Overall, the project was 78.10% completed at the end of 4Q10 and is expected to come on line in the second half of 2011 as per schedule. This third hydro generating facility will produce enough energy to displace all existing thermal power to feed electric furnaces at the Sorowako facility and is the main initiative in PTI’s energy cost reduction program
The Company recorded total net earnings of US$437.4 million (US$0.044 per share) in 2010, an increase of 156.7% from last year net earnings of $170.4 million (US$0.017 per share). Total nickel matte delivered in 2010 was 77,035 metric tons, 13.7% higher than 67,782 metric tons nickel matte delivered in 2009. The average realized price was US$16,568 per metric ton, 47.6% higher than average realized price of US$11,227 per metric ton in 2009.
Cost of goods sold was US$8,467 per metric ton, an increase of 11.2% compared to US$7,614 per metric ton in 2009 mainly because of the higher cost of diesel and HSFO. EBITDA in 2010 totalled US$677.6 million, 107% higher than US$327.8 million in 2009. The Company’s results are summarized below (unaudited) – all figures are in US$ except for nickel in matte production and deliveries which are in metric tons.
