FNI net income down six times on nickel price slump 

The slump in nickel prices, along with a decline in ore shipments, dragged the net income of Global Ferronickel Holdings Inc. (FNI) about six times lower during the six months ended June. 

 

The net income of FNI shrank to P152.7 million from the P901.4 million booked a year earlier, according to the company's quarterly report to the Philippine Stock Exchange on Monday. 

 

The listed miner exported only 1.561 million wet metric tons (WMT) of nickel ore,  down 26 percent from 2.110 million WMT due to persisting rainy weather conditions. The company only managed to finish loading seven vessels in June. 

 

The decrease in the export revenues was aggravated by the decline of nickel ore price from last year's average of $43.89/WMT to only $26.84/WMT for the first semeter of 2015, lower by $17.05/WMT or 39 percent," FNI said. 

 

The company incurred costs and expenses amounting to P1.5 billion. This represents a 24 percent decrease from last year's P1.97 billion because of the lower cost of sales, excise taxes and royalties.

 

"The decrease in cost of sales and excises taxes and royalties was attributable mainly to the decline in volume shipped and in nickel ore price," the company said.  — Keith Richard Mariano/ELR, GMA News