Global Ferronickel Holdings, Inc., one of the country’s leading nickel ore producer, reported a 93 percent fall in attributable net income to P10.6 million in the first quarter of 2024 from P153.8 million in the same period last year due to lower metal prices.
In a disclosure to the Philippine Stock Exchange, the firm said its first quarter 2024 revenues of P589.9 million is down 47.4 percent from P1.1 billion in the prior year due to lower selling prices which more than offset higher sales volumes.
The average realized nickel ore price dropped to $27.42 per wet metric ton (WMT), down 55.4 percent year-over-year from $61.48 amid continued oversupply, predominantly attributable to Indonesia's output of nickel pig iron (NPI) to China.
Total shipments reached 0.381 million WMT of medium-grade ores, up 15.3 percent over prior year.
“In this uncertain environment, we are focused on boosting productivity and cost efficiency, which is critical to protecting value,” FNI President Dante R. Bravo said.
He added that, “This includes optimizing our operations both in Surigao and Palawan, reviewing service contract rates, and reexamining planned capital investments.
“We are also working to improve our resilience to weather challenges, ensuring timely completion of projects, including flood control measures to reduce risks to operations and production arising from La Niña.”
Cost of sales amounted to P309.8 million, up 13.2 percent from P273.7 million, a reflection of higher volumes produced and shipped during the quarter.
Operating costs, namely excise taxes and royalties, general and administrative, and shipping and distribution declined to P279.6 million, down 19.3 percent.