Nickel producer’s income falls 20%

This diversification helps improve our cash flows and better positions us to take advantage of opportunities for short — and long-term growth

Global Ferronickel Holdings Inc., one of the largest nickel ore producers in the country, reported a 19.6 percent decline in attributable net income to P1.5 billion, while consolidated net income dropped 15.9 percent to P1.8 billion last year.

In a stock exchange report on Monday, the company disclosed that the decline in earnings was due to a high base from the previous year, which included a one-off gain of P680 million from a settlement received by a subsidiary in 2022.

Excluding this one-time transaction, consolidated net income would have accelerated 22.9 percent.

After deducting the net income attributable to non-controlling interests, net income to FNI shareholders was down 19.6 percent to P1.5 billion while earnings per share, or EPS, declined 18.2 percent to P0.3022.

Strong EPS

Without the one-off impact in 2022, net income attributable to shareholders grew by 3.9 percent and EPS rose by 5.8 percent.

Meanwhile, FNI raked in a revenue of P8.8 billion last year, up 30.5 percent from the previous year due to higher volume from full-year operations and medium-grade ores from the Palawan mine, which started commercial shipments in September 2022 and became a subsidiary in December 2022.

“Our revenues highlight our success in operating the Palawan mine reliably in its first full year of production. This diversification helps improve our cash flows and better positions us to take advantage of opportunities for shor — and long-term growth,” FNI president Dante R. Bravo said.

Based on the report, FNI’s balance sheet remains robust with net cash of P1.3 billion, based on the sum of short-term interest-bearing borrowings of P347.3 million and lease liabilities of P823.3 million, less cash and cash equivalents of P2.4 billion.

Capital expenditures reached P871.4 million, 42.5 percent over the previous year.

Recent investments have been directed towards expansion in mine facilities, causeway and land acquisition for future projects.