Apollo Global Capital Q3 “profit” up 40% y/y to P18-M net loss

By this point, what’s further underwater? APL’s theoretical iron ore, or APL itself?
Merkado Barkada

Apollo Global Capital [APL 0.03 unch] [link] posted a Q3 net loss of P18.4 million, up 40% from its Q3/21 net loss of P30.6 million,  and up 10% from its Q2/22 net loss of P20.5 million.

APL’s 9M net loss was 18% larger y/y. APL is the country’s first off-shore mining firm, which was created to rip iron ore out of the seabed and ship the ore to China.

For the 7th straight quarter since insisting that its mining ship was “in position” to begin operations, APL failed to actually do any mining and therefore also failed to recognize any revenue.

APL did note that its “general and administrative costs” have gone up nearly 15%, due to “repairs and maintenance” (of a boat that hasn’t done any work), “representation & entertainment”, and “salaries & employee benefits”.

MB BOTTOM-LINE

Sounds like APL owners and staff have been having a great time on the shareholders’ dime. Still no operations, and even worse, costs are up because of entertainment, salaries, and benefits.

For what? The only thing of note that APL has done is sell more shares of itself to the public, which it used to buy a minority stake in the boat that it still hasn’t even managed to use yet.

A year and a half ago, APL shares were worth P0.32. The boat was in position. Operations were imminent.

Just waiting for that rough weather to clear so the waves would die down.

Three months later, the shares are worth P0.18. Boat is in position. Three months later, the shares are worth P0.11.

Are they fighting to get ore up off the seabed? Nope.

They’re focused on a follow-on offering to raise some money to invest it in the holding company that owns the boat.

Three months later, the shares are worth P0.07. No updates.

Three months later, the shares are worth P0.05. Silence.

Three months later, the shares are worth P0.04. Nothing.

Three months later, today, the shares are worth P0.028.

By this point, what’s further underwater? APL’s theoretical iron ore, or APL itself?

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