FNI delivers solid first-half results with higher revenues and a 200% surge in profit

Global Ferronickel Holdings, Inc. (PSE: FNI), one of the Philippines’ leading nickel ore producers, posted first-half 2025 revenues of P3.288 billion, net income attributable to shareholders of P622.1 million, and earnings per share of P0.1214.

Revenues from mining expanded by 6.9% year-over-year to P3.281 billion from P3.071 billion on the back of elevated realized prices, despite lower shipment volume for the period. Favorable nickel ore prices—backed by constrained ore supply—underpinned topline growth. Volume decline, on the other hand, was largely attributed to inclement weather and regulatory challenges.

Sales volume decreased by 23.2% to 1.620 million WMT from 2.109 million WMT in 2024. The sales mix moved to 62% low-grade and 38% medium-grade ore, from 41% and 59% respectively in the same period last year. This is primarily due to extended rainfall days that hampered medium-grade ore production, leading to a strategic focus on low-grade shipments.

Average realized nickel ore price rose to US$35.61 per WMT, 40.5% higher than US$25.35 per WMT in 1H 2024. Low-grade ore sold at an average of US$31.41 per WMT, up 74.7%, while medium-grade ore fetched US$42.50 per WMT, an increase of 39.2%.

In Palawan, operations delivered export revenues of P2.096 billion in the first half of 2025, an 8.5% increase from P1.931 billion in the prior year, despite a 17.1% decline in shipment volumes to 0.892 million WMT from last year’s 1.076 million WMT. The drop in sales volume was mainly due to permitting delays, which limited access to new mining areas, compounded by adverse weather conditions, with pacing of foreign vessel arrivals contributing minimally. To stay on track with growth targets, the site optimized ore reserve utilization and enhanced mine planning and operational efficiency through advanced technology integration. 

Strengthening the long-term outlook, the Department of Environment and Natural Resources (DENR) approved in May 2025 the renewal of the Mineral Production Sharing Agreement (MPSA) for the Ipilan Nickel Project, extending its validity until September 2043, supporting the planned increase in annual production capacity from 1.5 million to 3.0 million WMT over the next two years—set to bolster the Group’s growth trajectory and profitability.

Meanwhile, Surigao operations generated P1.186 billion in export revenues, equivalent to a 4.0% year-on-year increase from P1.140 billion. While shipment volume declined by 29.5% to 0.728 million WMT from prior year volume of 1.033 million WMT, due to excessive rainfall that disrupted the mine site’s preparatory activities, the site adopted a firm and future-oriented approach. Strategic stockpiling efforts at the beginning of the year guaranteed proper inventory levels, allowing the mine to meet market demand. With the weather significantly improving from mid-May to June, the site took advantage of the operating window to substantially ramp up shipments during the period, more than doubling sales volume performance compared to April and early May. These results highlight Surigao’s operational flexibility, prudent implementation, and sustained focus on long-term growth. 

“Our first-half performance demonstrates our resilience and ability to deliver value despite external factors. While unfavorable weather and regulatory constraints affected shipment volumes, we capitalized on market pricing. Strategic mine planning, technology integration, and disciplined cost management enabled us to sustain revenue growth and protect margins,” said FNI President Dante R. Bravo.

Cost of sales dropped by 16.4% to P1.451 billion from P1.735 billion in the same period last year, primarily reflecting lower shipment volumes. Lower contract hire rates owing to the movement in sales mix towards a greater proportion of low-grade ores also helped reduce cost.

Operating expenses were fairly flat at P1.079 billion, with a modest increase of P10.6 million or 1.0%, largely on account of provisions for Input VAT impairment and freight charges not incurred in the previous year. This was offset by a substantial decline in excise taxes and royalties, following a one time settlement booked in 2024. 

“With the first half of the year behind us, our attention continues to be on maintaining operational improvements, stepping up shipments, and setting FNI up for long-term, sustainable growth,” Atty. Bravo added.

Net income attributable to FNI shareholders amounted to P622.1 million, higher by 200.4% compared to P207.1 million in the prior year. On a per share basis, earnings rose to P0.1214 from P0.0404 in the prior year.

Demonstrating industry leadership through multi-sector accolades

During the first half of 2025, FNI received several distinguished awards that emphasize the Group’s leadership in legal excellence, environmental responsibility, and sound workplace practices. 

FNI’s legal team was named In-House Team of the Year (Construction and Real Estate category) at the Asian Legal Business Southeast Asia Law Awards in Singapore, and placed as finalist in three other key categories—Energy and Resources In-House Team of the Year (Top 5), Woman Lawyer of the Year – In-House (Top 6, Eveart Grace P. Claro), and Fintech Lawyer of the Year (Top 15, Leo Ernesto Thomas G. Romero)—reinforcing its commitment to governance and integrity. 

In Surigao, FNI’s operating arm Platinum Group Metals Corporation (PGMC) received the Best Adopt an-Estero/Waterbody Program award from the DENR for its decade-long rehabilitation of the Kinalablaban River, affirming PGMC’s ESG leadership in the mining sector.

PGMC was also named a finalist in the 2025 Kapatiran sa Industriya (KAPATID) Awards by the Employers Confederation of the Philippines (ECOP), recognizing its inclusive and innovation-driven workplace anchored on ethical and sustainable operations.

Global Ferronickel Holdings, Inc. (PSE: FNI) is a holding company whose principal subsidiary is Platinum Group Metals Corporation, the Philippines’ second largest nickel ore producer with mining assets in Claver, Surigao del Norte and Brooke’s Point, Palawan. Through our presence across the Philippines and in China, we are pursuing a multi-pronged strategy to diversify our investment portfolio into value added nickel processing, cement manufacturing, and port operations and logistics.