PHINMA Energy Corp. reported a P406.60 million in net loss attributable to its equity holders in the second quarter, more than four times bigger than the P91.57-million loss recorded in the same period last year, as revenues failed to keep up with the increase in cost and expenses.
The quarter’s financial report is the first time submitted by the company’s new owners. The disclosure was signed by Eric T. Francia, its new president and chief executive officer. He holds the same posts in Ayala-led AC Energy, Inc., which bought Phinma Energy earlier this year.
Revenues during the quarter reached P4.932 billion, up 11.5% from P4.42 billion. The bulk came from the sale of electricity at P4.925 billion. The company also derived some income from dividend and rental gains.
The company’s top-line figure, however, was outpaced by its cost and expenses, which hit P5.08 billion, or higher by 3.9% compared with P4.89 billion a year ago.
In the first half, net loss attributable to the equity holders of the parent firm reached P551.87 million, expanding more than 10 times the level in the same semester last year. Revenues during the semester reached P8.32 billion, up 2.6% from P8.11 billion previously.
In contrast, Phinma Energy’s subsidiary Phinma Petroleum and Geothermal, Inc. (PPG) trimmed its losses attributable to equity holders to P7.87 million during the quarter from P51.54 million a year ago.
During the semester, PPG recorded a net loss of P9.42 million, an improvement over the P57.61 million losses in the same period last year.
On Feb. 7, 2019, Philippine Investment Management (Phinma), Inc., Phinma Corp. and AC Energy signed an investment agreement for the latter’s acquisition of their combined 51.476% stake in Phinma Energy via a secondary share sale through the Philippine Stock Exchange (PSE).
On April 15, 2019, the Philippine Competition Commission approved the sale.
AC Energy made a tender offer for other shareholders on May 20, 2019 to June 19, 2019, with a total of 156,476 public shares of Phinma Energy tendered.
On June 24, 2019, the PSE confirmed the special block sale of Phinma Energy shares to AC Energy. On the same day, AC Energy subscribed to 2.632 billion shares of Phinma Energy.
As of June 30, 2019, AC Energy directly owns 66.34% of the parent company’s total outstanding shares of stock.
As a result the direct parent company or intermediate parent company of Phinma Energy is AC Energy, while the ultimate parent company is Mermac, Inc.
Phinma Energy is managed by AC Energy under an existing management agreement, which was assigned by Phinma, Inc. to AC Energy on June 24, 2019.
On Wednesday, shares in Phinma Energy fell by 2.9% to P2.34 each, while those of PPG dropped by 1.39% to P5.66 each. — Victor V. Saulon
