Global Ferronickel doubles first-half profit to P1.24B

MANILA, Philippines — Global Ferronickel Holdings Inc. doubled its first-half net income to P1.24 billion from P617 million a year earlier, as higher nickel prices and sales volumes lifted revenues.

The listed mining company said revenues rose 46.7 percent to P4.82 billion.

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“This substantial improvement in the first-half performance was primarily driven by higher revenues, resulting from increased nickel ore prices and higher sales volume during the current period,” Global Ferronickel said in its financial report on Thursday.

The company also benefited from the peso-dollar exchange rate, which averaged P60.54. Its average realized nickel ore price climbed 23.6 percent to $44.03 per wet metric ton (WMT).

Nickel ore export revenues rose 46.8 percent to P4.82 billion, while sales volume increased 11.6 percent to 1.81 million WMT. Global Ferronickel completed 33 shipments in the first half, up from 29 a year earlier.

“Supporting elevated nickel ore prices are tighter ore supply conditions amid quota restrictions in Indonesia, and periodic cost increases arising from geopolitical tensions in the Middle East,” it added.

READ: Global Ferronickel rides robust global metal prices

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The Surigao mine generated P1.43 billion in export revenues, up 20.8 percent, while Palawan mine revenues surged 61.6 percent to P3.39 billion.

Meanwhile, costs and expenses rose 35.5 percent to P3.43 billion. Cost of sales increased 35 percent to P1.96 billion, mainly due to higher contract rates from rising diesel prices and increased shipment volumes.

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Global Ferronickel mines and exports nickel ore and has interests in steel manufacturing, port operations and logistics, ferronickel smelting and cement. It operates nickel mines in Claver, Surigao del Norte, and Brooke’s Point, Palawan. /pai