SEC approves basic energy capital hike
By Jordeene B. Lagare – September 30, 2021
from The Manila Times
Basic Energy Corp. secured the Securities and Exchange Commission‘s (SEC) approval to increase its capital stock to P5 billion to bankroll new and existing projects.
In a disclosure on Wednesday, Basic Energy said the SEC approved last September 10 to double its authorized capital stock to P5 billion from P2.5 billion.
“The increase in the authorized capital stock is to provide sufficient shares of stock for subscription by potential strategic investor/s in the company and to provide flexibility to the company in the issuance of additional shares in the future to raise capital to fund new projects and any possible expansion plans without having to secure SEC approval again for an additional increase in capital stock,” it added.
Earlier, Basic Energy reported a net loss of P33.79 million in the first half of 2021 from the net loss of P22.094 million in the same period last year.
In the second quarter of 2021 alone, its net loss stood at P18.36 million from a net income of P14.269 million a year ago.
As stated on its website, Basic Energy aims to be “a major Philippine company in the exploration, production, and supply of alternative and renewable energy, oil and allied products and services.”
Back in March, Basic Energy obtained from the Department of Energy (DoE) the Wind Energy Service Contract to develop a wind farm in Mabini, Batangas.
The proposed wind project, which has a potential capacity of 50 megawatts, will rise in 4,860 square meters of land in the Mabini Peninsula.
The contract provides for a non-extendible five-year pre-development stage and a 25-year development stage, counted from contract signing and which is extendible for another 25 years, subject to the DoE’s approval.
The wind facility is projected to commence commercial operations by 2027 or five years from the date of the awarding of the wind energy service contract.
Shares of Basic Energy rose by 3 centavos or 5.66 percent to settle at 56 centavos each.
