Nickel Asia Corporation Reported P202 Million in Net Income for Q12024

For the first three months that ended on March 31, 2024, Nickel Asia Corporation (NAC) released its unaudited financial and operating results. The company's attributable net income (net of minority interest) was P202 million, which is less than the P970 million it declared for the same period the previous year.

Compared to P2.21 billion the previous year, earnings before interest, taxes, depreciation, and amortization (EBITDA) came to P1.05 billion.

Due to reduced ore prices brought on by the nickel industry's glut, ore sales revenues fell by 41% to P2.09 billion from P3.55 billion in the previous year. During the period, the company's operational mines sold a total of 2.61 million wet metric tons (WMT) of nickel ore, a slight increase over the 2.39 million WMT sold the previous year.

During this time, the weighted average sales price of nickel ore dropped by 48% to $13.84 per WMT, compared to $26.80 per WMT during the same period the previous year. From these nickel ore sales, the business collected P56.13 per US dollar, a 2 percent increase from P54.80 the previous year.
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According to a breakdown of ore sales, the company exported 0.61 million WMT of saprolite ore during the period, compared to 0.60 million WMT at an average price of $50.37 per WMT during the same time the previous year.

Similarly, the company realized an average price of $7.53 per pound of payable nickel, or $10.27 per WMT, for the 2 million WMT of limonite ore it delivered to the high-pressure acid leach (HPAL) plants in Coral Bay and Taganito. These plants' prices are determined by the London Metal Exchange (LME). In comparison, last year's 1.79 million WMT at $11.98 per pound was worth $18.84 per WMT.

In addition, NAC recorded losses of P193.90 million from its combined equity part of investments in the two HPAL facilities, compared to P252.12 million in profits the previous year.

Renewable Energy

Due to a notable increase in overcall capacity, Emerging Power, Inc.'s (EPI) subsidiary Jobin SQM, Inc. (JSI) increased generation by 19.3% to 44,881 megawatt hours for the first quarter of 2024. On February 28, 2024, JSI opened a successful 72-MWp expansion in Sta. Rita and Subic raised the capacity to 172-MWp.

Increased sales and efficient cost control allowed for a 4% gain in EBITDA to P160 million while maintaining an EBITDA margin of 79%.

EPI is focused on expanding its business portfolio 

The pre-development phase of Northern Palawan Power Generation Corporation's solar project in Subic-Cawag is nearly finished. By the third quarter of this year, construction of the planned 145 MWp plant is anticipated to start, and by the fourth quarter of 2025, commercial operations are planned to begin.

Furthermore, the solar power project in Leyte is being carried out by Greenlight Renewables Holdings, Inc., a joint venture between EPI and Shell Overseas Investments B.V. The first 120 MWp of the project is expected to be finished by the first quarter of 2025.
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Regarding EPI's affiliate, Biliran Geothermal, Inc.'s modular-style geothermal project, energization work is still underway despite the installation of the project's first two 2-MW turbines. This prepares the ground for the subsequent stage of the 10-MW capacity development, which aims to reach 50-MW full capacity in the medium term.

“The long-term prospects for the nickel industry remain positive with the market’s growing preference for nickel in the stainless steel and EV battery industries. As the global energy transition gains momentum, we expect the nickel oversupply to eventually turn into a deficit and thereafter trigger a resurgence in nickel prices. Furthermore, we remain on track to achieve our twin goals of becoming a premiere ESG investment and a Top 25 company in the Philippine Stock Exchange by 2025,” said NAC President and CEO Martin Antonio G. Zamora.

“Our three new nickel projects, namely Dinapigue, Bulanjao, and Manicani, will set the stage for growth in our operations. Together, they are poised to significantly bolster our nickel ore sales volumes in the coming years. Also, our diversification into renewable energy is proceeding according to plan. With EPI solar capacity now at 172-MWp and almost 400-MWp in the immediate pipeline, our role as stewards of our country’s natural resources takes on even greater significance,” he added.

Nickel Asia Corp. is a diversified natural resources development company in the Philippines, comprising six operating and two exploratory mines and interests in the country’s only two high-pressure acid leach (HPAL) plants and in a renewable energy subsidiary.