Global Ferronickel Holdings, Inc. (FNI) reported a 169.9% increase in first-quarter 2026 net income attributable to shareholders, reaching PHP 478 million from PHP 177.3 million a year earlier, driven by higher nickel ore prices and increased shipment volumes.
The nickel producer posted revenues of PHP 1.646 billion during the quarter, while earnings per share rose to PHP 0.0935 from PHP 0.0346 in the same period last year.
FNI said mining revenues from its Palawan operations increased by 36.4% to PHP 1.644 billion from PHP 1.205 billion in the first quarter of 2025.
The company attributed the growth to stronger shipment volumes and improved nickel ore prices.
Total nickel ore shipments rose by 8.9% to 550,632 wet metric tons (WMT), compared to 505,459 WMT a year earlier. FNI said all shipments during the quarter were sold exclusively to customers in China.
The company also reported that the average realized nickel ore price increased by 23% to USD 50.57 per WMT from USD 41.13 per WMT last year.
According to FNI, higher prices were supported by tighter nickel ore supply caused by quota restrictions in Indonesia and supply concerns linked to geopolitical tensions in the Middle East.
“Our Palawan operations delivered a strong start to the year, supported by continued operational optimization, enhanced mine planning, and disciplined execution across our operations,” said FNI President Atty. Dante R. Bravo.
“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,” he added.
Despite stronger earnings, the company said production and operating costs also increased during the quarter.
Cost of sales rose by 2.2% to PHP 544.2 million, while operating costs increased by 22.4% to PHP 530.2 million, mainly due to higher excise taxes and shipping expenses tied to larger shipment volumes.
Still, FNI said improved revenues and market conditions helped offset the higher expenses.
The company also highlighted sustainability and operational resilience initiatives during the quarter, including the deployment of electric dump trucks and the production of 31,500 seedlings for mine rehabilitation activities.
Looking ahead, FNI said it expects further growth as the Surigao mining season begins in the second quarter of 2026.
“We continue to strengthen operational resilience through technology adoption, resource expansion, and disciplined cost management, positioning FNI to capitalize on evolving market dynamics, including changing nickel price fundamentals,” Bravo said.
As global nickel supply conditions continue to shift, how important will Philippine nickel producers become in meeting international demand?
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