JAKARTA, May 6, 2011 --- PT International Nickel Indonesia Tbk (“PTI” or the
“Company”, IDX: INCO) announces results for the first quarter 2011 (“1Q11”), unaudited.
PTI recorded net earnings of US$111.9 million in 1Q11 (US$0.011 per share), a slight
increase compared to US$108.9 million (US$0.011 per share) achieved in the fourth quarter
of 2010 (“4Q10), and 47% above the US$76.2 million (US$0.008 per share) in first quarter of
2010 (“1Q10”). Earnings before interest, taxes, depreciation and amortization (“EBITDA”)
totalled US$172.7 million in 1Q11, compared to US$170.1 million in 4Q10 and US$121.7
million in 1Q10. The increase in net earnings and EBITDA in 1Q11 compared to 4Q10 was
mainly driven by higher average realized prices, partially offset by lower deliveries mainly
due to lower production.
The Company recorded an average realized price for nickel in matte of US$20,246 per metric
ton during 1Q11, compared to US$18,011 per metric ton in 4Q10. Sales revenue was
US$322.4 million for the three months period ended March 31, 2011, a slight decrease
compared to US$329.2 million in 4Q10. This was mainly due to lower deliveries of nickel in
matte. In 1Q11 deliveries totalled 15,924 metric tons compared to 18,280 metric tons in
4Q10.
Production of nickel in matte in 1Q11 was 16,501 metric tons, a decrease of 8% compared to
17,996 metric tons in 4Q10. Production was mainly impacted by natural events, like the
earthquake that took place in Sorowako on February 15th, and lightning storms. Electrical
lines and some facilities were impacted causing a temporary shutdown of production. All
procedures were taken to guarantee a proper and safe operation before the restart. The
production impact is expected to be compensated throughout 2011.
PT International Nickel Indonesia Tbk’s total cost of goods sold in 1Q11 decreased to US$155.3 million fromUS$166.8 million in 4Q10, primarily due to lower production and deliveries of nickel in
matte. The cost of goods sold per metric ton in 1Q11 increased by 7% compared to 4Q10,mainly due to an increase in diesel costs, employee costs and services and contracts for
additional activities at the Process Plant and Hydroelectric facility related to the earthquake,
which were partially offset by the decrease in HSFO (High Sulphur Fuel Oil) costs.
The Karebbe hydroelectric power generating plant project is progressing very well, as
planned, and is expected to be concluded on time and on budget. Overall, the project was
approximately 87% complete at the end of 1Q11 and is expected to come on line in the
second half of 2011. The project will produce enough hydroelectric energy to displace
“Company”, IDX: INCO) announces results for the first quarter 2011 (“1Q11”), unaudited.
PTI recorded net earnings of US$111.9 million in 1Q11 (US$0.011 per share), a slight
increase compared to US$108.9 million (US$0.011 per share) achieved in the fourth quarter
of 2010 (“4Q10), and 47% above the US$76.2 million (US$0.008 per share) in first quarter of
2010 (“1Q10”). Earnings before interest, taxes, depreciation and amortization (“EBITDA”)
totalled US$172.7 million in 1Q11, compared to US$170.1 million in 4Q10 and US$121.7
million in 1Q10. The increase in net earnings and EBITDA in 1Q11 compared to 4Q10 was
mainly driven by higher average realized prices, partially offset by lower deliveries mainly
due to lower production.
The Company recorded an average realized price for nickel in matte of US$20,246 per metric
ton during 1Q11, compared to US$18,011 per metric ton in 4Q10. Sales revenue was
US$322.4 million for the three months period ended March 31, 2011, a slight decrease
compared to US$329.2 million in 4Q10. This was mainly due to lower deliveries of nickel in
matte. In 1Q11 deliveries totalled 15,924 metric tons compared to 18,280 metric tons in
4Q10.
Production of nickel in matte in 1Q11 was 16,501 metric tons, a decrease of 8% compared to
17,996 metric tons in 4Q10. Production was mainly impacted by natural events, like the
earthquake that took place in Sorowako on February 15th, and lightning storms. Electrical
lines and some facilities were impacted causing a temporary shutdown of production. All
procedures were taken to guarantee a proper and safe operation before the restart. The
production impact is expected to be compensated throughout 2011.
PT International Nickel Indonesia Tbk’s total cost of goods sold in 1Q11 decreased to US$155.3 million fromUS$166.8 million in 4Q10, primarily due to lower production and deliveries of nickel in
matte. The cost of goods sold per metric ton in 1Q11 increased by 7% compared to 4Q10,mainly due to an increase in diesel costs, employee costs and services and contracts for
additional activities at the Process Plant and Hydroelectric facility related to the earthquake,
which were partially offset by the decrease in HSFO (High Sulphur Fuel Oil) costs.
The Karebbe hydroelectric power generating plant project is progressing very well, as
planned, and is expected to be concluded on time and on budget. Overall, the project was
approximately 87% complete at the end of 1Q11 and is expected to come on line in the
second half of 2011. The project will produce enough hydroelectric energy to displace
existing oil and diesel use to feed the electric furnaces at the Sorowako facility and it is
expected to reduce our cost of energy.
On March 25, 2011, the Company made a US$150 million second draw down of the Senior
Export Facility Agreement (SEFA). As a result of this second draw down, PTI has fully
utilized the total amount of US$300 million from the loan facility provided by Bank of
Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Corporate Bank, Ltd., with the support of Nippon
Export and Investment Insurance (NEXI) to fund the Karebbe hydroelectric project.
The Company plans to spend US$232 million on capital expenditures in 2011.
PTI investments are in line with its strong growth strategy for the next years. The Company’s
goal is to achieve an annual production of 90,000 metric tons against the average of 73,000
metric tons in the last five years, an increase of 23%. PTI is also consolidating advanced
studies for a further production increase distinctly beyond this annual level of 90,000 metric
tons over the next few years, based on a sustainable business environment and consequently
increasing the return to shareholders, enhancing the social and economic development of the
local communities and generating further fiscal revenues for all levels of government.