Global Ferronickel income up 47% on higher ore prices
Global Ferronickel Holdings Inc. (FNI) posted a 46.6% higher net income attributable to equity holders to P354.24 million in the second quarter, due to higher nickel ore prices and lower operating expenses.
In a disclosure to the stock exchange, Friday, the miner and nickel ore exporter said its revenues for the quarter fell 11.7% to P1.51 billion after company operations were temporarily suspended in April due to the coronavirus disease 2019 (COVID-19) pandemic.
For a six-month period, the company posted 85.6% higher net income to P196.69 million against P105.99 million in the same period last year, while revenues fell 12.9% to P1.55 billion. Meanwhile, FNI’s operating expenses during the second quarter fell 19.3% to P389.43 million.
For the first half, its operating expenses declined by 13.3% to P577.62 million.
“While the operating expenses decreased as a result of the temporary suspension of operations, the group incurred added costs in putting up health-related measures to safeguard the well-being of its employees and host and neighbouring communities,” the disclosure said.
FNI said the average realized ore price for the first half rose to $24.38 per wet metric ton (WMT), compared with $18.82 per WMT last year. A total of 23 vessels carried 1.26 million WMT of ore, of which 52% were low-grade ore and 48% were medium-grade ore.
“This shipment is less than the previous year’s tally of 33 vessels with a total volume of 1.81 million WMT and a product mix of 39% low-grade ore and 61% medium-grade ore,” the disclosure said.
FNI President Dante R. Bravo said the company had regained its momentum and is expected to meet its adjusted shipment target of 5 million WMT for the year despite the pandemic.
“We continue to adhere strictly to all government-mandated health and safety guidelines and remain committed to assisting our community in this time of crisis,” Mr. Bravo said.
FNI said since the start of the pandemic, it has spent almost P20 million as assistance to households in the town of Claver in Surigao del Norte and nearby areas.
On Friday, shares in FNI rose 2.73% or P0.03 to close at P1.13 each.