Philippine Infradev’s net loss widens as expenses jump

PHILIPPINE Infradev Holdings, Inc. announced on Tuesday that its attributable net loss for the first quarter of the year widened to P11.24 million from a loss of P8.30 million in the same period a year ago, mainly due to a significant increase in expenses.

The company’s total revenues surged to P9.96 million in the first quarter from P1.37 million in the same period in 2021.

“The significant increase… in total revenue was mainly due to the higher number of units sold,” the company said in its first-quarter report.

Meanwhile, its total expenses jumped to P21.21 million from P9.66 million in the same period last year.

“Total cost and expenses increased by P11.54 million from P9.66 million mainly because of the higher cost of sales,” the company noted.

Philippine Infradev’s cash decreased by P195.99 million “mainly because of the payment to the contractors and consultants related to the subway project and transit-oriented development.”

“Other major payments were related to the land development and construction costs for the fourth subdivision of the company named Casas Carlina.”

At the same time, the company said that its receivable increased by P47.61 million mainly because of the advances made to contractors.

“Real estate held for sale and development increased by P66.91 million mainly because payments made for the land development and construction costs related to the fourth subdivision of the company.”

Its retained earnings decreased by P11.24 million because of the net loss incurred.

The company incorporated in 2019 the Makati City Subway, Inc. (MCSI) that will be used as a special corporate vehicle for its subway project in Makati.

“On March 7, 2022, the group received the certificate of registration of MCSI as new operator of Local Government Unit Public-Private Partnership from the Board of Investments effective Jan. 17, 2022,” it said.

“This includes the approval of tax incentives which shall be limited to four years income tax holiday, followed by five years enhanced deductions and duty exemption on importation of capital equipment, subject to compliance with certain conditions,” it added.

The company also noted that the clearing of its Binangonan property is still the focus of its operations with the goal of completely freeing from third party claims 500 hectares of the 2,200-hectare property.

“Due to a number of factors, including the recognition of Supreme Court’s recognition of the superior rights of the bonafide occupants as well as potential challenges in clearing and re-titling of this large area of land, manage-ment has estimated that only 1,513 hectares are expected to be recovered/cleared and re-titled in the name of the parent company as of March 31, 2022 and Dec. 31, 2021,” it said.

Philippine Infradev shares closed 3.33% higher at P0.93 apiece on Tuesday. — Arjay L. Balinbin