GLOBAL Ferronickel Holdings Inc. (FNI) posted a 50.9-percent hike in consolidated net income to P2.29 billion in the first nine months from P1.52 billion a year earlier, citing higher revenue, a weaker peso and lower financing costs.
In a disclosure on Friday, FNI said consolidated revenue rose 36.9 percent to P9.15 billion from P6.68 billion as nickel ore prices and shipment volumes increased.The peso averaged P61.21 per US dollar, compared with P56.94 a year earlier, boosting the peso value of dollar-denominated export sales.Mining accounted for 99.9 percent of consolidated revenue, with services from Mariveles Harbor Corp. contributing the rest.Pretax income climbed 48.5 percent to P2.93 billion. FNI’s share of its associates’ net income spiked by 87.5 percent, while financing costs fell 59.1 percent.Earnings per share climbed 51 percent to P0.4498 from P0.2978.“We are encouraged by the group’s performance in the first nine months of the year, supported by higher shipment volumes, improved nickel ore prices and continued operational efficiencies,” FNI President Dante Bravo said.Nickel ore export revenue rose 37 percent to P9.13 billion in the first nine months and 27.4 percent to P4.32 billion in the third quarter (Q3). Strong demand from China and Indonesia, as well as tighter Indonesian supply following production quota restrictions, supported prices in the first half.Prices eased in Q3 as supply constraints eased and demand softened.The average realized nickel ore price grew 16.9 percent to $37.39 per wet metric ton (WMT) from $31.99.Low-grade ore prices increased 15.3 percent to $34.44 per WMT, while medium-grade ore prices rose 17.3 percent to $49.85 per WMT. A larger share of medium-grade ore in the sales mix also lifted the overall average price.FNI completed 73 shipments, up from 66 a year earlier. Total shipment volume climbed 9 percent to 3.994 million WMT from 3.664 million WMT.On the other hand, shipments from the Surigao mine fell 7.4 percent to 2.467 million WMT, while shipments from Palawan increased by 52.6 percent to 1.527 million WMT.
