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FNI profits surge 86% due to higher prices

Global Ferronickel Holdings, Inc. (FNI), the country’s second-largest nickel ore producer, recorded an 86 percent jump in net income to P195.8 million in the first half of 2020 against the P105.5 million it posted during the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said its revenues are down 12.9 percent to P1.55 billion as a result of the temporary suspension of operations in April to combat the coronavirus’s spread.

“But despite the slight drop in revenues, the Group was able to generate higher net income mainly due to higher nickel ore prices and lower operating expenses,” FNI said.

The average realized ore price for the first half of 2020 jumped to US$24.38 per wet metric ton (WMT) against last year’s price of US$18.82/WMT.

A total of 23 vessels carried a combined volume of 1.26 million WMT, of which 52 percent were low-grade ore, and 48 percent consisted of 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 percent low-grade ore and 61 percent medium-grade ore.

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 neighboring communities. As such, the overall decrease in operating expenses is only at 13 percent.

“We have regained momentum and are still on track to meet our adjusted shipment target of 5 million WMT for 2020,” said FNI President Dante R. Bravo.

He added that, “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.”


Source: Manila Bulletin (https://mb.com.ph/2020/08/15/fni-profits-surge-86-due-to-higher-prices/?utm_source=rss&utm_medium=rss&utm_campaign=fni-profits-surge-86-due-to-higher-prices)

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