Sherritt spring earnings up

Toronto-based Sherritt International (S-T), which has operations in Canada and Cuba, is reaping the benefits of record oil production, upward-trending commodity prices and enhanced efficiency.

The company earned $14.5 million (or 12 cents per share) during the second quarter, compared with $10.7 million (6 cents per share) in the corresponding period of 1998. Revenue between the two periods rose slightly to $96.9 million from $95.7 million.

The company’s metals division consists mainly of mining and processing facilities in Cuba and refinery operations in Fort Saskatchewan, Alta.

Sheritt earned $11.3 million on revenue of $42.5 million in the 3-month period, compared with $9 million on $44.8 million in revenue a year ago.

The refinery’s finished cobalt production was 605 tonnes in the second quarter, below the year-ago record high of 660 tonnes. Nickel production between the two periods slipped to 6,442 from 6,773 tonnes.

Meanwhile, Sherrit’s fertilizer business suffered a considerable lull: earnings from that division totalled $2.1 million on revenue of $28.9 million in the recent quarter, compared with $7 million on $33.9 million a year ago.

On June 30, Sherritt’s total assets were valued at $1.3 billion, including cash and short-term investments of $406 million.