Global Ferronickel Holdings Inc. (GFNI) said Thursday it will pursue its share buyback program to boost shareholder value.
GFNI said in a disclosure to the stock exchange its board approved the plan to continue the company’s previously approved buyback program and acquire up to 2 percent of its outstanding common shares at market price over the next three years.
The buyback program will be funded from internally generated funds, subject to the availability of sufficient undistributed retained earnings, it said.
“This initiative is part of the company’s ongoing commitment to enhance shareholder value and reflects the board’s confidence in the company’s long-term growth prospects,” GFNI said.
GFNI repurchased over 1 million common shares worth nearly P2.7 billion. The share price of GFNI recently dropped to a 52-week low of P1.21 on weak global nickel prices from a 52-week high of P2.95.
The stock price of GFNI closed unchanged at P1.25 Thursday.
GFNI is the country’s second largest nickel ore producer with mining assets in Cagdianao, Surigao del Norte and Brooke’s Point, Palawan.
The company’s net income went down 40.8 percent in the first half to P207 million from P350 million in the same period last year. The decline was linked to the drop in nickel ore prices.
Revenues amounted to P3.078 billion, down 1.2 percent from P3.11 billion in the same period last year.
About 99.7 percent of the group’s revenues were generated from its mining operations, with the remaining portion derived from services rendered to its customers.
The mining firm is the process of diversifying into other businesses including logistics and cement manufacturing to expand its revenue sources.
