Global Ferronickel Holdings Inc. (FNI) recorded a nine percent increase in its net earnings in 2022 following higher nickel prices and favorable foreign exchange environment.
The company disclosed a net income of Php 2.2 billion last year, a slight increase from Php 1.98 billion in the previous year.
“Our performance during the year showed our Company’s ability to evolve and make further progress against our strategic priorities,” FNI president Dante Bravo said in a disclosure to the Philippine Stock Exchange.
FNI’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded to 48% from 39% in the previous year.
While company revenues dropped 13% to Php 6.7 billion due to adverse weather, it was offset by the increase in medium-grade ore prices and favorable foreign exchange impact.
FNI’s shipped volume also declined 24% to 3.35 million wet metric tons (WMT) following rainy days that affected the production of nickel ore.
Bravo said the beginning of commercial operations at the Palawan mine, and the acquisition of 20% interest in Guangdong Century Tsingshan Nickel Industry Co. Ltd (GCTN) will allow FNI to carry out production all-year round and generate better financial growth.
“We believe this positions us to achieve more consistent profitability throughout the year. It will also allow us to benefit from higher nickel prices and China’s ongoing reopening, which is expected to prompt a rebound in stainless steel production and in the new energy vehicle supply chain,” Bravo said.