GLOBAL Ferronickel Holdings, Inc. (FNI) reported a second-quarter net income of P735 million, more than double its profit attributable to parent firm equity holders a year ago, on the back of higher ore sales.

In a stock exchange disclosure on Friday, it said ore sales for the quarter rose 64.2% to P2.48 billion, while costs of sales climbed 22.2% to P790.34 million.

“We garnered more favorable results this year as the market experienced a big jump in the price of low-grade nickel ore. We did not experience a stoppage of operations as what happened in April last year,” FNI President Dante R. Bravo said in the disclosure.

For the first half, FNI’s attributable net income improved 226.3% to P641.86 million from P196.69 million.

The company’s revenues for the period rose 68.9% to P2.61 billion. Cost of sales also rose 23.1% to P837.81 million.

A total of 32 nickel ore shipments were completed in the first half, higher than the 23 shipments last year.

Due to higher nickel ore shipments, FNI posted a 38.3% increase in its shipment volume to 1.74 million wet metric tons (WMT) from the 1.258 million WMT in 2020.

“These were 100% exported to China and consisted of 1.465 million WMT low-grade nickel ore and 0.275 million WMT medium-grade nickel ore. The resulting sales mix is 84% low-grade ore and 16% medium-grade ore in 2021 compared to 52% low-grade ore and 48% medium-grade ore in the previous year,” FNI said.

According to FNI, the average realized nickel ore price during the first half rose 27.6% to $31.10 per WMT from $24.38 per WMT a year ago.

It added that the price of low-grade ore for the period rose 61.7% to $31.01 per WMT while the price of medium-grade ore increased 5.2% to $31.58 per WMT.

Meanwhile, FNI said it spent more than P35 million on its coronavirus disease 2019 (COVID-19) pandemic response and is continuously working with different local government units in preventing the spread of the virus.

“We have donated personal protective equipment (PPE) supplies, test kits, disinfectants, vitamins, medical equipment, medical services, rice and other essential goods, and participated in building a molecular laboratory in Surigao and a COVID-19 test center in Palawan,” FNI said.

On Friday, shares of FNI at the stock exchange rose 2.51% or six centavos to end at P2.45 each. — Revin Mikhael D. Ochave