Global Ferronickel income dips in first half of 2018

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) saw its net income plummet to P4 million in the first semester  from P152 million in 2017 amid the decline in production and lower prices in the global market.

FNI, the second largest nickel producer in the country and the largest single lateritic mine exporter in the world, said revenues fell 23 percent to P1.43 billion due to lower prices of nickel ore.

The company’s total nickel ore sales also decreased 19 percent to 1.55 million wet metric tons (WMT).

FNI said the decrease in shipment volume was due to the shift towards higher-grade nickel ores that required more preparation, especially in anticipation of such shipments for the second half in order to maximize profitability.

It is now pushing for the shipment of higher-grade nickel ores with 1.65 percent nickel content to take advantage of its relatively high price with better margin.

“Despite a very challenging first half, measures to boost operational efficiency and our ability to adapt to the changing market conditions continue to enable us to achieve positive results,” FNI president Dante Bravo said.

The lower production was exacerbated by the decline in nickel ore prices to the average $17.50 per WMT.

FNI signed supply contracts for the delivery of 4.6 million WMT to Guangdong Century Tsingshan Nickel Industry Co. Ltd., Baosteel Resources International Co. Ltd., and Baiyin International Investment Ltd.

These contracts represent about 84 percent of FNI’s revised target shipment volume of 5.5 million WMT for the year.

FNI is the second largest nickel producer in the country.  Among its subsidiaries are Platinum Group Metals Corp., Surigao Integrated Resources Corp., PGMC-CNEP Shipping Services Corp., and PGMC International Limited. — Louise Maureen Simeon