MacroAsia sees lower earnings this year

MANILA, Philippines - MacroAsia Corp., the aviation support unit of tycoon Lucio Tan, expects its earnings to range between P200 million and P300 million this year, significantly lower than the P406 million profit reported in 2010.

MacroAsia president and chief executive officer Joseph Chua, however, said he remains confident that the company’s profitability would improve once the new hangar project in Manila comes online. He said the firm is looking to double its earnings in the next three years, or by 2013, as new businesses start contributing.

The $30-million new hangar, an investment and capacity expansion by unit Lufthansa Technik Philippines Inc., is expected to boost the latter’s capability in serving the growing range of Airbus models that include the A320, A330 and the A340.

Lufthansa likewise acquired a bigger space near the existing hangar at Mactan, Cebu that could be used to build an overflow unit for narrowbody maintenance works in the future.

Chua said the company is also bullish on the reopening of its Infanta nickel project in Brooke’s Point, Palawan, which he said “remains to be the single biggest business opportunity on hand. “

Based on its Philippine Mineral Reporting Code-compliant report, at one percent nickel cutoff grade, the mine has 34.7 dry metric tons of nickel resource, with an average nickel grade of 1.23 percent available for mining. Of the resource estimate, more than 31 percent or 10.8 million dry metric tons are already measured, enabling the company to implement at least a 10-year mine production plan anytime now. The mine covers a total land area of about 1,114 hectares.

Chua said the company is also looking forward to its new water distribution with its planned treatment plant and distribution business facility in Cavite, that will require an initial investment of about P2.5 billion.

The project, which will be undertaken through a consortium of wholly-owned unit MacroAsia Properties Development Corp. and Watergy Business Solutions Inc., will involve the development of the infrastructure required to collect, treat and deliver surface water from the Maragondon River for use by the water districts and other water utility companies in Cavite.

The facility will churn out about 150 million liters of treated water per day and will be funded partly from internally generated cash and external sources. The project will be developed over a two-year period.

Most of the output water is already being eyed for off-take arrangements with the water districts and some water utility concessionaires in Cavite, MacroAsia said.

MacroAsia provides aircraft maintenance, repairs and overhaul (MRO) services, charter flight services, airport ground handling services and in flight catering services and operates a special economic zone at the Ninoy Aquino International Airport (NAIA). All subsidiaries and associated companies of MAC render services directly to the airline customers/locators at NAIA, Manila Domestic Airport, Mactan_Cebu International Airport (MCIA) and Davao International Airport.