FNI reports 2022 net income of ₱2.2 billion and provides update on strategy

By: Philippine Resources March 28, 2023

Photo credit: Global Ferronickel Holdings

Global Ferronickel Holdings, Inc. (PSE: FNI) delivered resilient financial results and key operating achievements in 2022, with net income growing 9% to ₱2.2 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanding to 48% from 39% in the previous year.

“Our performance during the year showed our Company’s ability to evolve and make further progress against our strategic priorities,” said Dante R. Bravo, FNI President. “Most notably, we completed the commissioning and started commercial export of nickel ore from our mine in Palawan. We also completed the acquisition of a 20% stake in Guangdong Century Tsingshan Nickel Industry Co. Ltd (GCTN), the owner of a 33-hectare rotary kiln-electric furnace (RKEF) processing facility in China that caters to customers from within and outside Guangdong’s Economic and Technological Development Zones. Finally, for the second consecutive year, we received the highest Presidential Mineral Industry Environmental Award by the Department of Environment and Natural Resources and the Philippine Mine Safety and Environment Association in recognition for our environmentally and socially responsible surface mining operations.”

Revenues decreased 13% year-over-year to ₱6.7 billion due to adverse weather, partially offset by a rise in medium-grade ore prices and a favorable foreign exchange impact when compared to 2021. Total shipped volume declined 24% to 3.735 million wet metric tons (WMT) resulting from weather events such as more rain days that affected the production of nickel ore. Overall product mix was 76% low-grade ore and 24% medium-grade ore with an average realized price slightly lower by 0.3% from prior year to US$31.68 per WMT.

“The start of commercial operations at the Palawan mine along with the acquisition of 20% interest of GCTN, both in the fourth quarter, should enable us to carry out production all year-round and generate improved financial growth as we scale and integrate the business. We believe this positions us to achieve more consistent profitability throughout the year. It will also allow us to benefit from higher nickel prices and China’s ongoing reopening, which is expected to prompt a rebound in stainless steel production and in the new energy vehicle supply chain.”

"Moving forward, we are very excited about expanding our nickel ore production by 20% this year with the addition of our Palawan mine with an annual production capacity of 1.5 million WMT that would complement our Surigao mine's 7.5 million WMT. We are also on track with our medium-term strategy which includes the construction of a steel processing plant in Mariveles, Bataan and its commercial production, and the development of a nearby port,” Bravo concluded.


Article courtesy of Global Ferronickel Holdings

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