GLOBAL Ferronickel Holdings Inc. (PSE: FNI) said its income grew 9 percent last year to P2.2 billion from the previous year’s P1.97 billion despite fall in revenues.
Revenues fell 13 percent year-over-year to P6.7 billion from the previous year’s P7.7 billion due to adverse weather, partially offset by a rise in medium-grade ore prices and a favorable foreign exchange impact when compared to 2021.
“Our performance during the year showed our company’s ability to evolve and make further progress against our strategic priorities,” FNI President Dante R. Bravo said.
“Most notably, we completed the commissioning and started commercial export of nickel ore from our mine in Palawan. We also completed the acquisition of a 20 percent stake in Guangdong Century Tsingshan Nickel Industry Co. Ltd., the owner of a 33-hectare rotary kiln-electric furnace processing facility in China that caters to customers from within and outside Guangdong’s Economic and Technological Development Zones,” Bravo said.
Total shipped volume fell 24 percent to 3.73 million wet metric tons (WMT) resulting from weather events such as more rain days that affected the production of nickel ore. Overall product mix was 76 percent low-grade ore and 24 percent medium-grade ore with an average realized price slightly lower by 0.3 percent from prior year to $31.68 per WMT.
Bravo said the start of commercial operations at the Palawan mine along with the acquisition of 20 percent interest of GCTN, both in the fourth quarter, should enable the company to carry out production all year-round and generate improved financial growth as it scale and integrate the business.
“We believe this positions us to achieve more consistent profitability throughout the year. It will also allow us to benefit from higher nickel prices and China’s ongoing reopening, which is expected to prompt a rebound in stainless steel production and in the new energy vehicle supply chain,” he said.
“Moving forward, we are very excited about expanding our nickel ore production by 20 percent 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.
“We are also on track with our medium-term strategy which includes the construction of a steel processing plant in Mariveles, Bataan and its commercial production, and the development of a nearby port,” Bravo said.