ABACORE Capital Holdings, Inc. incurred a net loss of P13.24 million in the first quarter, reversing its P74.8 million net income attributable to owners a year ago, after a decline in its revenues during the period.
“The company posted a gross income of P2.09 million or 98% lower compared to the gross income of P104.07 million for the comparative period last year. This is due mainly to that bulk amount in previous year’s came from the trading gain of P103.79 million which comprises nearly 100% of gross income,” the company said in a disclosure on Monday.
The company also reported that in 2021, it returned to profitability with a comprehensive net income of P5 billion, turning around from a net loss of P101 million the year before.
The firm said in a statement that its financial results for 2021 reflect a more “stable operating environment and the strength of the company’s franchise.”
“ABA’s (AbaCore’s stock symbol) financial results for 2021 were positively impacted by secular trends involving the Batangas economy, with more businesses expanding their operations into the province given its attractive proposition as an economic powerhouse,” Chairman Raul B. De Mesa said.
The holdings company said that of its earnings, around P580 million is regular income while the rest was a fair value adjustment on its properties as a result of the various partnerships it entered with investors.
“As such, the value of land in Batangas has significantly appreciated in recent years, therefore increasing ABA’s bottom line and boosting our shareholders’ return on their investments,” Mr. De Mesa said.
In 2021, ABA entered into a $100-million joint venture with Starfleet Innotech to provide land to the New Zealand-based asset management company for a resort-like condotel development.
It is also continuing to pursue its plans to build ABA Energy Hub, a 103-hectare energy facility in the province. The company also agreed to provide land to a subsidiary of A. Brown & Co., Inc. for the development of a liquefied natural gas facility.
“ABA has a land bank of about 330 hectares, which grants us the flexibility and capacity to partner with various entities that are interested in investing in Batangas,” Mr. De Mesa said.
“Our 2021 financial results demonstrate we have been successful in pursuing partnerships that fully take advantage of Batangas’ potential, and we expect this success to continue in 2022 as more investors and businesses recognize the economic viability of the province,” he added.
ABA is a holding company with interests in real estate, tourism, financial services, and energy.
At the stock exchange on Monday, ABA shares went up by 7.63% or ten centavos to finish at P1.41.
