Global Ferronickel Holdings Inc. (FNI), one of the Philippines' leading nickel ore producers, reported a 169.6-percent increase in first-quarter net income as higher nickel ore prices and increased shipment volumes boosted earnings.
The company said net income attributable to shareholders reached PHP478 million in the three months ended March 31, 2026, up from PHP177.3 million in the same period last year. Earnings per share rose to PHP0.0935 from PHP0.0346.
Revenue for the quarter totaled PHP1.646 billion, driven by stronger performance from its Palawan operations.
Mining revenues from Palawan increased 36.4 percent to PHP1.644 billion from PHP1.205 billion a year earlier, supported by higher shipment volumes and improved nickel ore prices.
Total shipments rose 8.9 percent to 550,632 wet metric tons (WMT) from 505,459 WMT in the first quarter of 2025. The company said its sales mix during the quarter consisted of 80 percent medium-grade nickel ore and 20 percent low-grade ore, compared with 100 percent medium-grade shipments in the prior-year period.
All shipments were sold to customers in China.
The average realized nickel ore price increased 23 percent to $50.57 per WMT from $41.13 per WMT a year earlier.
FNI attributed the price increase to tighter nickel ore supply resulting from production quota restrictions in Indonesia and higher industry costs linked to geopolitical tensions in the Middle East.
“Our Palawan operations delivered a strong start to the year, supported by continued operational optimization, enhanced mine planning, and disciplined execution across our operations,” FNI President Dante Bravo said.
“Despite global and industry-wide cost pressures, we remained focused on improving productivity, maintaining operational readiness, and advancing initiatives that strengthen efficiency and support our long-term growth objectives,” he added.
Cost of sales rose 2.2 percent to PHP544.2 million from PHP532.3 million, reflecting higher production and shipment volumes.
Operating expenses, including excise taxes, royalties, general and administrative expenses, and shipping and distribution costs, increased 22.4 percent to PHP530.2 million from PHP433.3 million. The company attributed the increase primarily to higher excise taxes and shipping expenses associated with increased shipment volumes.
Despite the higher costs, profit growth outpaced revenue growth due to stronger nickel prices and improved operating performance.
FNI also continued implementing sustainability and operational resilience initiatives during the quarter, including the deployment of electric dump trucks to support emissions reduction efforts and the production of 31,500 seedlings for mine rehabilitation activities.
Looking ahead, Bravo said the company expects additional contributions from its Surigao operations as the mining season begins in the second quarter.
“We continue to strengthen operational resilience through technology adoption, resource expansion, and disciplined cost management, positioning FNI to capitalize on evolving market dynamics, including changing nickel price fundamentals,” he said.
“With the start of the Surigao mining season in the second quarter of 2026, we expect to further build on the strong momentum started by our Palawan operations and accelerate overall performance for the year.”
