MANILA, Philippines – Listed Global Ferronickel Holdings Inc. (FNI) barely earned during the first nine months of the year after its net income plunged 99 percent to P7 million amid a decline in revenue and tough market conditions.
FNI, the second largest nickel producer in the country and the largest single lateritic mine exporter in the world, said net income dipped 52 percent to P289 million in the third quarter alone.
Total export revenues fell 48 percent to P2.7 billion due to lower volumes shipped, a change in product mix and the weakening market price of nickel ore.
The company’s total nickel ore sales dropped 17 percent to 3.4 million wet metric tons (WMT).
Total shipments solely sold to China likewise decreased to 63 vessels due to intermittent rainfall which was three times higher than in the same period in 2015.
The decrease in export revenues was also exacerbated by the fall in nickel ore prices from the average $28.18 per WMT in 2015 to only $16.17 per WMT this year.
Just recently, FNI inked a memorandum of cooperation with China’s Baiyin Nonferrous Group Co. Ltd. for the possible joint construction of a $700-million stainless steel plant in the country.
Baiyin is a major state-owned enterprise in Gansu province and is one of the largest producers of non-ferrous metals in China.
FNI was among the 11 other companies that passed the recently-concluded audit of the Department of Environment and Natural Resources on the country’s mines nationwide.