Nickel Asia profit surges 40% to P2.77B
Nickel Asia Corp. reported a 40.6 percent jump in net income to P2.77 billion on the back of higher nickel and cobalt prices.
The company sold an aggregate 17.7 million wet metric tons of nickel ore , lower than the 19.3 million WMT disposed the previous year.
Despite the drop, higher prices of ore products coupled with the change in the ore mix and a more favorable peso to US dollar exchange rate resulted to total revenues increasing by 11.4 percent to P15.74 billion.
Nickel Asia realized an average of $4.67 per pound of payable nickel on its shipments, up from $4.39 per pound of payable nickel sold in 2016.
As for export sales, Nickel Asia achieved an average price of $24.42 per WMT compared to $20.77 a year earlier.
“Despite the relaxation of Indonesia’s ore export ban in 2017, we saw nickel prices improving, mainly on the back of stronger demand and a second year of a global supply deficit, said company president and CEO Gerard H. Brimo.
“While ore supply from Indonesia will be the biggest challenge in 2018, we anticipate continuing strong demand for the metal, partly due to the growth taking place in the battery sector. We note as well decreasing inventory levels for refined nickel in various commodity markets, an indication of continuing supply deficit, which should provide strong support to prices”, he added.