Global Ferronickel Holdings, Inc. (FNI) reported a 71.3% surge in second-quarter attributable net income to P761.87 million from P444.80 million a year earlier, driven by higher nickel ore prices and stronger overall shipment volumes.

FNI, listed on the Philippine Stock Exchange, is one of the country's largest nickel ore producers, selling mainly to buyers in China, where nickel ore feeds stainless steel production — the largest single source of global nickel demand.

According to the company's quarterly financial disclosure, consolidated net income climbed 71.9% to P759.71 million from P441.95 million, while revenue rose 52.9% to P3.18 billion from P2.08 billion. Export revenue from mining operations also increased 52.9% in the quarter, to P3.17 billion from P2.08 billion.

Second-Quarter Costs and Expenses

Cost of sales rose to P1.42 billion from P922.93 million, while operating expenses increased to P932.28 million from P641.13 million.

Excise taxes and royalties reached P298.07 million, and shipping and distribution costs climbed to P389.99 million. General and administrative expenses declined to P244.22 million from P295.20 million.

FNI's share in the net income of associates grew to P159.64 million from P61.31 million, while finance costs fell to P16.66 million from P39.93 million. Income before tax rose to P970.53 million from P542.07 million, and income tax expense increased to P210.81 million from P100.11 million.

First-Half Performance

For the first six months of the year, attributable net income nearly doubled to P1.24 billion from P622.13 million, while consolidated net income doubled to P1.24 billion from P617.01 million. The company attributed the improvement mainly to higher nickel ore prices and increased sales volume.

First-half revenue rose 46.7% to P4.82 billion from P3.29 billion, with mining operations accounting for about 99.9% of the total.

Mine-Level Results

The Surigao mine generated P1.43 billion in export revenue, up 20.8% from P1.19 billion. Its average realized nickel ore price increased 22.2% to $35.28 per wet metric ton (WMT) from $28.86 per WMT, offsetting an 8.2% decline in shipment volume to 0.668 million WMT from 0.728 million WMT.

The Palawan mine delivered P3.39 billion in export revenue, up 61.6% from P2.10 billion. Its average realized nickel ore price rose 19.5% to $49.15 per WMT from $41.13 per WMT, while shipment volume increased 27.8% to 1.14 million WMT from 0.892 million WMT.

Group-wide, FNI completed 33 shipments in the first half, up from 29 a year earlier, and total volume shipped grew 11.6% to 1.808 million WMT from 1.620 million WMT. The group's average realized nickel ore price rose to $44.03 per WMT from $35.61 per WMT.

The Philippines ranks among the world's largest nickel ore exporters, a position that grew after Indonesia — the world's biggest nickel producer — imposed a ban on ore exports in 2020, redirecting Chinese demand toward Philippine supply.

First-Half Costs and Expenses

Cost of sales for the period increased 35% to P1.96 billion from P1.46 billion, mainly due to higher contract hire expenses, fuel, oil, and lubricants, as well as higher depreciation, depletion, and personnel costs.

General and administrative expenses fell 16.5% to P553.1 million from P662.5 million, mainly because of lower provisions for impairment losses on input value-added tax (VAT), consultancy fees, and marketing and entertainment expenses, partly offset by higher taxes and licenses.

Excise taxes and royalties totaled P365.9 million and P239.2 million, respectively, reflecting higher revenue during the period.

FNI said there were no new exploration results as of June 30 beyond those disclosed in its 2025 annual report. The Surigao mine also operates in a region where monsoon rains in the second half of the year have historically constrained mining and shipments. — Marron Joshua F. Mendoza