FNI profit plummets to P3.98M

Listed Global Ferronickel Holdings Inc. (FNI) saw its net income for the first semester plummet to P3.98 million as it wrestled with lower shipment volume and lower prices of nickel ore.

Its income fell sharply from P151.76 million in the same period last year, while revenues fell by 23.2 percent to P1.43 billion.

For the first six months, FNI’s shipment volume decreased by 19 percent to 1.55 million wet metric tons (WMT) from 1.91 million WMT a year ago.

Meanwhile, the average price for nickel ore decreased to $17.59 per WMT against $19.44 per WMT in 2017. This consequently caused the company’s profit to plummet.

The decrease in FNI’s output was caused by the company’s decision to shift its focus toward higher-grade nickel ore in order to maximize profitability. This is in anticipation of the demand for such shipment this second semester.

“It is the first time in the past several years that we are pushing for shipment of higher-grade nickel ores… to take advantage of its relatively higher price,” said FNI president Dante R. Bravo.

“Despite a very challenging first half of the year,” Bravo added the company’s “ability to adapt to the changing market conditions” had enabled it to achieve positive results.