Phinma Energy swings to net loss in April-June

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PHINMA Energy Corp. on Wednesday reported a net loss attributable to equity holders of the parent firm of P91.57 million in the second quarter, reversing last year’s income of P221.87 million in the same quarter last year as revenues slipped while cost and expenses rose.

Revenues during the quarter stood at P4.42 billion, lower by 6.2% compared with the P4.71 billion recorded in the same three months last year. Cost and expenses went up 4.3% to P4.89 billion from P4.69 billion a year ago.

In the first half, Phinma Energy posted a net loss of P48.26 million, a reversal of last year’s P300.29 million net income attributable to the parent firm’s equity holders.

Revenues during the semester fell to P8.13 billion, lower by 2.3% compared with the P8.32 billion recorded in the same six months last year. Cost and expenses increased by 5.6% to P8.70 billion from P8.24 billion previously.

Including non-controlling interest, the company said consolidated net loss during the first six months was at P76.41 million from a net income of P298.17 million a year ago.

It attributed the reversal to the “continued low prices in the competitive energy supply market as well as higher costs resulting from excise taxes imposed by the TRAIN Law,” referring to Republic Act 10963 or Tax Reform for Acceleration and Inclusion.

“In 2018 the company also recognized P80 million in actual and provisional costs on soon-to-expire oil and gas service contracts. Moving forward, the Company will continue initiatives to improve margins by expanding its wholesale customer portfolio and lowering its cost of power,” Phinma Energy said in a statement.

South Luzon Thermal Energy Corp., a 45%-owned affiliate, generated 817 gigawatt-hours (GWh), translating in a net income of P827 million in the first half and paying P500 million in dividends.

Another affiliate Maibarara Geothermal, Inc. started operating its second geothermal unit in March 2018, producing a total of 77 GWh of geothermal energy from its two units during the semester.

The company’s subsidiary Phinma Renewable Energy Corp. produced 53 GWh of clean energy from its 54-megawatt (MW) wind farm in San Lorenzo, Guimaras. It registered P115.8 million in net income in the first semester.

Phinma Energy said it continues to pursue renewable energy projects, including a 40-MW expansion of its wind farm in Guimaras as well as a 45-MW solar farm in Padre Garcia, Batangas.

“Negotiations with offtakers on bilateral contracts for these projects are on-going,” it said.

The company said it had joined forces with sister company Union Galvasteel Corp. to promote solar rooftop generation, with an installation completed in Phinma Cagayan de Oro College. Phinma University of Pangasinan will follow by end-August.

On Wednesday, shares in Phinma Energy were unchanged at P1.18 each. — Victor V. Saulon