Phinma profit sinks 31% to P127 M in H1

MANILA, Philippines - Investment firm Phinma Corp. recorded lower profits in the first half, dragged by the weakness in its power generation and property businesses.

In a disclosure, to the stock exchanges, Phinma said its consolidated net income sank 31 percent to P127 million from P185 million a year earlier despite the seven percent growth in consolidated revenues to P2.7 billion.

However, consolidated costs and expenses rose at a faster rate of nine percent to P2.5 billion “due to higher costs of the subsidiaries and increased expenses, including increased depreciation costs from school building improvements,” Phinma said.

Consolidated revenues of steel fabricator Union Galvasteel Corp., the four schools of the Phinma Education Network and consultancy firms Fuld US and Fuld Philippines improved in the first semester.

But income contribution of affiliates Trans Asia Oil & Energy Development Corp. and Phinma Properties Holdings Corp. declined during the six-month period.

Despite higher income from subsidiaries, consolidated income from operations decreased nearly 15 percent to P154 million from P181 million “mainly due to a decline in investment income and an increase in expenses of the parent company,” Phinma said.

Phinma said it continues to have a strong balance sheet with cash and short-term investments of P1.2 billion, total assets of P10.2 billion and equity of P7 billion.

The listed holding firm is spending P11.4 billion this year, majority of which will support power generation projects of Trans-Asia. Phinma, formerly Bacnotan Consolidated Industries Inc., allotted P3.9 billion in capital expenditures last year.

Trans-Asia Renewable Energy Corp. is building a 54-megawatt (MW) wind farm in San Lorenzo, Guimaras.

Trans-Asia Oil partnered with Ayala Group’s AC Energy Holdings Inc. for South Luzon Thermal Energy Corp. (SLTEC).

The first 135-MW unit of power plant of SLTEC in Batangas will be operational late this year. Another 135 MW power coal-fired plant will start operations next year.