Nickel Asia Corp. on Tuesday said its net profit increased more than fourfold in the first three months of the year due to a one-time non-cash gain arising from the revaluation of its assets.
In a disclosure to the Philippine Stock Exchange, the country’s biggest nickel miner said its net income rose to P1.03 billion in the first quarter of 2014, up 376 percent from the P218 million recorded a year ago, due to the inclusion of a P416.6 million non-cash gain.
The non-cash gain arose from the declaration of property dividends by NAC subsidiary Rio Tuba Nickel Mining Corp. (RTN). When RTN revalued its 10 percent stake in Coral Bay Nickel Corp. (CBNC), NAC’s ownership in CBNC increased from an indirect 6 percent to a direct 10 percent interest.
Without the non-cash one-time gain of P416.6 million, NAC’s core income during the first quarter of 2014 stood at P177.1 million.
The company said total revenue rose to P1.7 billion in the first quarter from P1.40 billion in the comparable period of 2013, noting that higher revenues were achieved despite lower prices when compared to the same period last year.
NAC said the first-quarter profit also includes P11.7 million in equity income from its 22.5 percent investment in Taganito HPAL Nickel Corp (THPAL).
Nickel Asia said the plant produced 5,250 tonnes of contained nickel in the form of mixed sulfides, while shipments amounted to 5,734 tons. The plant operated at about 70 percent capacity, with minor repairs and fine-tuning continuing throughout the quarter at the newly commissioned plant.
The company also announced an attributable net income (net of minority interests) of P593.7 million in the first quarter this year compared to P100.3 million in the same period last year. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P794.7 million compared to P653.7 million in the prior year.