Global Ferronickel attributable income slips on lower revenues
NICKEL ore producer Global Ferronickel Holdings, Inc. (FNI) recorded a 0.65% decline in its attributable net income to P1.96 billion last year brought about by lower revenues.
In a disclosure to the stock exchange, the mining company said its net income after tax rose 9% to P2.16 billion from P1.98 billion 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 FNI President Dante R. Bravo in a statement.
The margin for earnings before interest, taxes, depreciation, and amortization improved to 48% from 39% in 2021. Comparative figures were not stated.
For 2022, the company reported a 13% decrease in revenues to P6.73 billion, which it attributed to “adverse weather.” But it said the decline was offset by the higher prices of medium-grade ore and a favorable foreign exchange rate.
The total shipped volume fell by 24% to 3.74 million wet metric tons (WMT), which the company attributed to frequent rainfall that affected nickel ore production.
The average realized price slightly slipped by 0.3% to $31.68 per WMT, which is composed of the overall product mix of 76% low-grade ore and 24% medium-grade ore.
In October, FNI reported that it acquired a 20% stake in Chinese alloy enterprise Guangdong Century Tsingshan Nickel Industry Co., Ltd., which owns a 33-hectare rotary kiln-electric furnace processing facility.
Mr. Bravo noted that FNI’s mining site in Palawan province has started the commercial export of nickel ore.
He said developments in the fourth quarter would support the company’s production and result in improved financial growth.
“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,” said Mr. Bravo.
He added that the company had prepared its medium-term strategy, which involves the construction of a steel processing plant in Mariveles, Bataan. The move includes the commercial production and development of its nearby port.
In February, FNI acquired an additional 24% stake in its unit Mariveles Harbor Corp. to gain greater control over the operations of the port.
FNI is a holding firm with business interests in nickel ore mining, logistics, cement and steel production, and port operations.
On Monday, its shares jumped by P0.07 or 2.94% to close at P2.45 apiece. — Sheldeen Joy Talavera