Manila, Philippines/August 14, 2020. Global Ferronickel Holdings, Inc. (FNI), the country’s second-largest nickel ore producer, recorded H1 net income of P195.8 million against the P105.5 million it posted during the same period last year. Revenues are down 12.9% to P1.545 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.
The average realized ore price for H1 2020 jumped to USD 24.38/WMT against last year’s price of USD 18.82/WMT. A total of 23 vessels carried a combined volume of 1.258 million WMT, of which 52% were low-grade ore, and 48% consisted of medium-grade ore. This shipment is less than the previous year’s tally of 33 vessels with a total volume of 1.812 million WMT and a product mix of 39% low-grade ore and 61% 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%.
“We have regained momentum and are still on track to meet our adjusted shipment target of 5 million WMT for 2020,” said Dante R. Bravo, FNI President. “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.”
Since the pandemic started, FNI has spent close to P20 million in the form of food supplies, PPEs, test kits and medical equipment, reaching over 134,609 households in Claver, Surigao del Norte and neighboring areas. It is also instrumental in setting up food security programs in the community, such as communal gardening, egg production and aquaculture.