Global Ferronickel Sees 52% Drop in 2024 Net Income on Lower Prices, Higher Costs
Global Ferronickel Holdings reported a 51.82% decline in attributable net income in 2024, falling to PHP 743.9 million (USD 13.2 million) from PHP 1.54 billion (USD 27.3 million) the previous year. The company cited weaker nickel ore prices and rising costs as the primary reasons for the downturn.
Revenue from contracts with customers dropped 13.37% year-on-year to PHP 7.61 billion (USD 134.8 million) from PHP 8.79 billion (USD 155.7 million). Despite strong shipment volumes, revenue declined due to lower realized nickel prices. The company stated that average realized nickel ore prices fell to USD 24.26 per wet metric ton (WMT), a 27.1% decline from USD 33.28 in 2023.
Low-grade nickel ore was sold at an average of USD 19.58 per WMT (down 23.9%), while medium-grade ores averaged USD 33.06 per WMT (down 29.1%). According to FNI, the price drop was driven by fluctuating demand in China and Indonesia, oversupply in Indonesia, and disruptions from steel mill maintenance shutdowns.
By site, Surigao contributed PHP 4.67 billion (USD 82.7 million), or 61% of total revenue, while Palawan generated PHP 2.93 billion (USD 51.9 million), or 39%. China remained FNI’s primary export destination, accounting for 93% of revenue, with Indonesia at 7%.
Meanwhile, cost of sales rose 13.29% to PHP 4.07 billion (USD 72.1 million), up from PHP 3.59 billion (USD 63.5 million), leading to a 31.81% drop in gross profit to PHP 3.54 billion (USD 62.7 million). Operating expenses increased by 8.04% to PHP 2.59 billion (USD 45.9 million), mainly due to a 23.1% rise in general and administrative costs to PHP 1.41 billion (USD 25 million).
Excise taxes and royalties fell by 6.96% to PHP 791.93 million (USD 14 million), and shipping and distribution expenses dropped 3.28% to PHP 384.4 million (USD 6.8 million). Total comprehensive income declined 56.78% to PHP 786.76 million (USD 14 million).
Despite the drop in earnings, the company shipped 5.448 million WMT of nickel ore in 2024, up 15.5% from the previous year, supported by production growth at both the Surigao and Palawan mine sites. Sales of low-grade ore rose 18.1%, representing 65% of total volume, while medium-grade ore accounted for 35%, up 11% year-on-year.
Capital expenditure reached PHP 1 billion (USD 17.7 million), a 15.6% increase from PHP 869 million (USD 15.4 million) in 2023. For 2025, FNI has allocated PHP 711.8 million (USD 12.6 million) in capex. Spending will focus on mine development, resource expansion, and further investment in the Bataan port and value-added processing, including ferronickel and battery-grade nickel facilities.
Looking ahead, FNI expects revenue to grow at a double-digit rate in 2025, supported by increased production capacity in Palawan—set to double to 3 million WMT—and improved output in Surigao. Port operations in Bataan are also expected to contribute more significantly to revenue.
