FNI profit jumps on higher nickel ore prices, shipments

LISTED miner Global Ferronickel Holdings, Inc. (FNI) posted a sharp increase in first-quarter (Q1) earnings, driven by higher nickel ore prices and increased shipment volumes from its Palawan operations.

In a statement on Thursday, the company said attributable net income surged 169.6% to P478 million from P177.3 million a year earlier, while revenues rose 36.6% to P1.646 billion from P1.205 billion.

“Our Palawan operations delivered a strong start to the year, supported by continued operational optimization, enhanced mine planning, and disciplined execution across our operations,” FNI President Dante R. Bravo said.

Mining revenues from the company’s Palawan operations climbed 36.4% to P1.644 billion during the quarter, driven by higher nickel ore prices and shipment volumes.

Total shipments increased 8.9% to 550,632 wet metric tons (WMT) from 505,459 WMT a year earlier.

FNI said its sales mix during the quarter consisted of 80% medium-grade and 20% low-grade nickel ore, compared with entirely medium-grade shipments in the same period last year. All shipments in both periods were sold to customers in China.

Average realized nickel ore prices rose 23% to $50.57 per WMT from $41.13 per WMT, which the company attributed to tighter nickel ore supply following production quota restrictions in Indonesia and higher industry costs linked to tensions in the Middle East.

“Despite global and industry-wide cost pressures, we remained focused on improving productivity, maintaining operational readiness, and advancing initiatives that strengthen efficiency and support our long-term growth objectives,” Mr. Bravo said.

Cost of sales for the January-to-March period increased 2.2% to P544.2 million from P532.3 million a year earlier due to higher production and shipment volumes.

Operating expenses, including excise taxes and royalties, general and administrative expenses, and shipping and distribution costs, rose 22.4% to P530.2 million from P433.3 million in the same period last year.

The increase was mainly attributed to higher excise taxes and shipping expenses linked to larger shipment volumes, partly offset by an input value-added tax impairment provision recognized in the prior year.

FNI said it remains focused on technology adoption, resource expansion, and cost management to strengthen operations and respond to changing nickel market conditions.

The company added that the start of the Surigao mining season in the second quarter is expected to support operations and contribute to overall performance this year. — Alexandria Grace C. Magno