Nickel Asia Corporation (NAC) saw its net income rise sharply in the first quarter of 2025, attributed to higher nickel ore prices and increased power generation revenues, despite lower ore shipment volumes and rising operational costs.
In its latest quarterly report, NAC reported a net income of Php673 million for the January to March period, up 75% from Php384.9 million a year earlier. Income attributable to equity holders more than doubled to Php501 million, from Php202.4 million in the same period last year.
Revenues grew by 10%, reaching Php2.93 billion, up from Php2.66 billion in Q1 2024. The company said stronger global nickel prices helped offset the 5% drop in ore shipments, which totaled 2.48 million wet metric tons (WMT) for the quarter.
“The average nickel ore sales price increased by 18% to 16.40 USD per WMT,” the company said, citing better export prices and a favorable foreign exchange rate of Php57.85 per USD.
Sales from power generation rose to Php296.8 million, a 19% increase, driven by a 29% jump in output. However, service revenues declined by 27% to Php235 million due to the completion of a major tailings facility project in 2024.
Costs also rose during the quarter. Total expenses went up 18% to Php1.77 billion, as longer hauling routes, bad weather, and higher shipping costs added unnecessary difficulties. Operating expenses grew 13% to Php704.6 million, including increased fuel, transport, and administrative costs.
Despite these challenges, NAC remains in a strong financial position. As of March 31, total assets stood at Php59.25 billion, while cash and cash equivalents amounted to Php11.1 billion. The company’s current liabilities fell 16%, while non-current liabilities rose by 18%, mainly due to ongoing investments in renewable energy.
The company is actively expanding its solar energy portfolio, with major projects under construction including the 240 MW San Isidro Solar Power Project and the 70 MW Cawag Solar Power Project. New entities and contracts have been approved to support these initiatives.
On the exploration side of things, NAC reported continued work on gold and copper prospects in Zambales and Cordon, with early geophysical surveys and sampling showing potential mineral zones.
While no new nickel exploration was undertaken during the quarter, the company reaffirmed its commitment to sustainability and community engagement, citing reforestation efforts and infrastructure support in its mining areas.
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