It is reported that net earnings of Sherritt International Corporation, Cuba's largest foreign private investor, doubled during the third quarter compared to the same quarter in 2010.

Net earnings more than doubled from USD 22.5 million to USD 45.5 million from July through September, on an 11.5% rise in revenues; net income for the first nine months of the year rose from USD 102.1 million to USD 169.2 million.

Nickel sales during the quarter, as measured by weight, declined from 9.8 million pounds to 9.4 million pounds. The company attributed the decline to bookkeeping issues related to the timing of shipments. Nickel sales for the nine months edged up from 27.5 million pounds to 27.9 million pounds, and the company expects a 1% rise for the full year.

Sherritt said that it deferred some investments planned for this year in the Moa nickel joint venture in eastern Cuba to 2012. In May 2011, the nickel price rally that had begun after a crash in 2008 stalled, and the outlook for prices is negative.

It added that "The Moa joint venture partners continue to review options for the completion of the Phase 2 expansion and construction of a sulphuric acid plant at Moa."

Meanwhile, oil production in Cuba rose slightly during the quarter, from 20,622 barrels of oil equivalent per day to 20,756 barrels of oil equivalent per day. The average realized price per barrel of oil during the quarter, however, shot up from USD 51.06 to USD 70.36. Accordingly, earnings from oil operations rose from USD 14.4 million in the third quarter last year to USD 43.4 million this year. The company expects oil production to rise 1% for the full year.

The company lost its interest in a gas and oil field near its three combined-cycle power plants in 2009, when a Canadian partner folded and sold its share to the Cuban government. State oil company Cupet is now sole operator of the oil field.

Separately, Sherritt announced it plans to offer USD 300 million of senior unsecured debentures, in part to redeem an older debt of USD 274 million in 7.875% Senior Unsecured Debentures Series A due November 26th 2012. The debentures will be offered through a syndicate to be led by GMP Securities and National Bank Financial; it will also include Scotia Capital.

(Sourced from www.cubastandard.com)