PT INCO REPORTS Q2 EARNINGS OF US$17.4 MILLION

Jakarta, July 31 (ANTARA) - PT International Nickel Indonesia Tbk (PT Inco) has announced that the company's gross profit margin in the second quarter of 2009 increased to 19.0 percent from 5.6 percent in the first quarter of 2009.

The increase was mainly due to a surge in the average realized price of nickel in matte compared to last quarter, lower oil prices and the company's continued implementation of cost containment initiatives, PT Inco said in a press statement here on Friday.

"PT Inco is continuing to focus on increasing the efficiency of its operations. This includes implementation of our integrated business planning to identify efficiency improvements, finalizing our organizational restructuring and lowering our maintenance costs," Arif Siregar, PT Inco's President Director, said.
Despite the recessionary scenario, sales were US$155.0 million for the three months ended on June 30, 2009, with an increase of 27.7 per cent compared to US$121.4 million in the first quarter of 2009.

"Higher rainfall at our catchment areas is providing sufficient water levels for our hydroelectric generating facilities to support our 2009 nickel in matte production," Siregar said.
The Company recorded net earnings of US$17.4 million in the second quarter of 2009 (US$0.002 per share) in line with the net earnings of US$17.2 million (US$0.002 per share) achieved in the first quarter of 2009. EBITDA totalled US$47.3 million in the second quarter of 2009, compared to US$46.3 million in the first quarter of 2009.
In the second quarter of 2009, cash provided by operating activities, but before capital expenditures, decreased US$11.9 million determined by US$13.3 million of income tax overpayment.
Cash used in relation to capital expenditures in the second quarter of 2009 was US$41.7 million, about the same amount spent in the first quarter 2009 of US$40.3 million. There was a net cash outflow of US$55.1 million in the second quarter of 2009 compared with a cash outflow of US$3.7 million in the first quarter of 2009.