PHINMA Energy logs P76-M loss in first half

By Myrna M. Velasco – August 17, 2018, 10:00 PM
from Manila Bulletin

Due to the combined pull of lower energy prices as well as escalating costs due to the government’s tax reform program, listed firm PHINMA Energy Corporation had logged consolidated net loss of P76 million in the first half.

That was a significant financial performance reversal from the P298 million it posted in the same period last year.

On the firm’s overall revenues, it had also gone slightly leaner in January-June this year to P8.1 billion from the 2017 level of P8.3 billion.

“The company posted a consolidated net loss of P76 million in 2018 due to continued low prices in the competitive energy supply market as well as higher costs resulting from excise taxes imposed by the TRAIN (Tax Reform for Acceleration and Inclusion Act) Law,” PHINMA Energy stated.

In the initial six months of the year, the firm similarly booked P80 million in “actual and provisional costs on soon-to-expire oil and gas service contracts.”

The company nevertheless indicated that it is anticipating improvements in financial turnout in the coming months.

Moving forward, the company said it “will continue initiatives to improve margins by expanding its wholesale customer portfolio and lowering its cost of power.”

Its power generation facilities have somehow posted favorable outcomes, with South Luzon Thermal Energy Corporation (SLTEC) logging net income of P827 million on its 817 gigawatt-hours of generation for the period.

SLTEC is 45 percent owned affiliate of the Del Rosario-led PHINMA Energy. Of the total earnings, PHINMA Energy noted that P500 million had been funneled to dividend payments.