Nickel Asia profit surges to P7.8B on higher metal prices

NICKEL Asia Corp. reported that its net income attributable to equity holders surged 91.9% to P7.81 billion last year due to higher global ore prices, expansions in its renewable energy business, and increased equity in nickel processing.

“In the face of the second year of the COVID-19 (coronavirus disease 2019) pandemic and the continuing economic and social hardships it has brought to our country and our communities, we remained focused on our people and our business objectives, on our diversification into renewables through our subsidiary Emerging Power, Inc. (EPI), and we even crafted and adopted a new vision for our future,” President and Chief Executive Officer Martin Antonio G. Zamora said.

He said the surging demand for nickel led by a doubling in sales of electric vehicles and a strong growth in stainless steel production resulted in a nickel deficit of about 150,000 tons, which happened when nickel production, particularly out of Indonesia, was lower than expected.

“This has clearly been a significant tailwind for the global nickel industry and for us,” Mr. Zamora added.

In its audited financial report for 2021, the company’s earnings before interest, tax, depreciation and amortization (EBITDA) climbed to P14.4 billion from P9.47 billion in the prior year, due to higher ore sales prices.

Nickel Asia sold a total of 17.94 million wet metric tons (WMT) of nickel ore at the weighted average realized price of $29.13 per WMT in 2021, compared with 18.20 million WMT at $22.46 per WMT in 2020.

Total revenue increased by 26% to P27.4 billion from P21.8 billion in 2020.

The mining company said it recognized a gain from its equity share in its investments in the two high pressure acid leach (HPAL) plants in the combined amount of P557.9 million in 2021, compared with P190.4 million in the prior year.

Due to stronger US dollar performance, the company said net foreign exchange gain from its dollar denominated net financial assets reached P558.9 million in 2021 from net foreign exchange losses of P450.8 million in 2020.

Nickel Asia’s renewable energy business through Jobin-SQM, Inc. (JSI), an EPI subsidiary, is expected to complete its 38-megawatt (MW) project expansion by the second quarter this year. This will increase the capacity of its Mt. Sta. Rita Solar Power Project located in the Subic Bay Freeport Zone to 100 (megawatts) MW from the current 62 MW.

Aside from expanding JSI’s projects, EPI is in the process of developing land in high irradiance areas in the country to grow its investments in solar power generation. It is also in the final stages of acquiring a solar power project in Visayas.

Nickel Asia said EPI is looking to reach 1,000 MW by 2028, adding about 500MW by 2025.

The board of directors also approved the declaration of a regular cash dividend of P0.17 and a special cash dividend of P0.05 per common share payable on April 7, to shareholders of record on March 24 this year.

At the stock exchange on Thursday, Nickel Asia shares dropped 14 centavos or 1.63% to finish at P8.43 per share. — Luisa Maria Jacinta C. Jocson