OTTAWA, July 30 Sherritt International Corp's
(S.TO) profit fell 39 percent in the second quarter, the
diversified Canadian miner and energy company said on
Wednesday, as weaker nickel prices and lower finished metals
production more than offset record oil prices.
Sherritt said it earned C$80.3 million ($78.7 million), or
28 Canadian cents a share, in the period ended June 30. That
compares with a profit of C$132.4 million, or 72 Canadian cents
per share, in the same period last year, when it had a smaller
Analysts expected a profit of 34 Canadian cents a share,
before items according to Reuters Estimates.
The Toronto-based company, which has power, oil, metal and
hotel investments in Canada, Cuba and Madagascar, said revenue
grew nearly 9 percent to C$441.2 million.
Finished nickel production fell 8 percent to 7,408 tonnes
as the Fort Saskatchewan refinery closed for annual
maintenance. Sherritt's realized price for the metal plunged 48
percent to $12.12 a pound.
The maintenance shutdown saw cobalt production fall 10
percent to 812 tonnes as realized prices gained 51 percent to
$45.67 a pound.
Sherritt said oil and gas revenue increased to C$104.5
million from C$77.7 million.
Coal revenue increased 18 percent to C$173.4 million.
The company has said it expects a cost run-up at the $3.3
billion Ambatovy nickel project in Madagascar due to higher
prices and will announce a new cost estimate in early 2009.
Sherritt has budgeted C$1.6 billion in 2008 capital
expenditures on the project, of which it is 40 percent owner
and operator. At full production, seen in 2010, Ambatovy is
expected to yield 60,000 tonnes of nickel and 5,600 tonnes of
(Reporting by Susan Taylor; editing by Janet Guttsman)