Marzo 7, 2008
David Friend. The Canadian Press. The Globe and Mail, Canada, March 7, 2008.
TORONTO -- Diversified resource company Sherritt International Corp. had its best ever year in 2007, increasing its annual profit by half to $370-million as it makes plans for further expansion.
The company's record profit "was achieved through a combination of excellent operating performances from all of our business units and strong commodity prices in nickel, cobalt and oil," Sherritt president and chief executive officer Jowdat Waheed said in a conference call.
Revenue for the year was $1.34-billion, up from $1.11-billion in 2006. Earnings per share grew to $1.79 from $1.42, the company reported.
Sherritt has mining operations in Cuba, part of a joint venture with the country's government. The company is also expanding an agreement to provide power to Cuba, boosting its Boca de Jaruco power operations by 150 megawatts to 526 megawatts.
Construction on the project will begin this year, Mr. Waheed said, and should be fully operational in late 2010.
Sherritt has been vocal about expanding in Cuba, a move it says will solidify the company's position if ever there is a shift in the country's political regime.
Long-time leader Fidel Castro stepped down last week as president, with his younger brother Raul Castro installed as his successor.
Meanwhile, the Toronto-based company is also finalizing talks to deliver 100 megawatts of power capacity in Madagascar, a $1.32-billion deal with the government it expects will be finalized some time this year.
Further expansion of its metal assets in Cuba, Madagascar and Saskatchewan will "deliver incremental production capacity in each and every year over the next three years," Mr. Waheed added.
"At this time we are in a very good state both in terms of our operating segments and our capacity to execute our capital projects."
Fourth-quarter profit was $83.5-million or 36 cents a share, compared with a year-ago profit of $78.6-million or 51 cents on fewer shares before the June acquisition of Madagascar nickel-cobalt developer Dynatec Corp.
Revenue for the quarter rose to $323.6-million from $304.2-million.
The company said strength in the dollar in the last half of the year offset a portion of the gains across its business units.
Total assets at year end were valued at $5.46-billion, more than double the 2006 book value of $2.55-billion.
SHERRITT (S)
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