Sherritt profits down in first half of 2001

Nickel producer Sherritt International (S-T) saw lower profits in the first half of the year, owing to lower prices for its principal commodities and higher energy costs.

For the six months ended June 30, Sherritt has net earnings of $37.4 million (11 per share) on revenues of $260.9 million. Comparable figures for 2000 were $66.7 million in profits and $252.3 million in revenues.

Roughly half the revenue ($129 million) came from fertilizer, nickel and cobalt sales. Production of nickel and cobalt metal was lower than in the first half of 2000, with 6,647 tonnes nickel and 693 tonnes cobalt shipped. Nickel and cobalt sulphides made up some of the difference, with 8,066 tonnes of concentrates going out the door.

The metals and fertilizer segment of the business made $10.5 million in operating profits during the first half. Oil and gas revenues were $79 million and operating profits for the segment $32.5 million in the same period.

The newly acquired Luscar coal assets generated $43.2 million in revenues between the May 12 closing of the sale and the end of the accounting period, and the division’s operating earnings were $2.6 million. Sherritt, in partnership with the Ontario Teachers’ Pension Plan, took over the Luscar Coal Income Fund with a bid of one common share of Sherritt, or $4, for each fund unit. Sherritt and the Pension Plan now each own half of the fund, which is the sole shareholder of Luscar Coal.

At the half-year mark Sherritt had $533.8 million in current assets, including $145.4 million in cash. Short-term liabilities were $338 million.