Friday, March 2, 2018

Phinma Energy’s bottom line plunges to 75%

By Lenie Lectura - March 1, 2018

PHINMA Energy Corp.’s net income plunged 75 percent to P347 million last year, from P1.383 billion in 2016.
In its disclosure to the Philippine Stock Exchange, Phinma Energy said the “margins in the electricity supply business were challenged by continued low market prices due to the competitive supply environment.”
The company, formerly Trans-Asia Oil and Energy Development Corp., said the income it registered in 2016 was mainly due to several transactions that year.
For one, it was in December 2016 when the company booked a P472-million gain on the sale of its 5-percent share in South Luzon Thermal Energy Corp. to Axia Power Holdings Philippines Corp. The company also sold that year transmission lines in Guimaras and La Union to the National Grid Corp. of the Philippines.
Also in 2016, Phinma Energy booked approximately P830 million in recurring income from electricity supply and income generated from independent power producers, and P81 million in financial and other income.
Despite a dismal performance last year, Phinma Energy ended 2017 as the second-largest single electricity supplier with a market share of 12.2 percent. The company also declared regular dividends of P0.04 per share for shareholders as of record date of March 14 and payment on April 5.
The company earlier entered into a Solar Energy Service Contract with the Department of Energy, granting it the exclusive right to explore, develop and utilize the solar energy resource in a 648-hectare area in the municipality of Bugallon, Province of Pangasinan.
“Predevelopment activities, such as yield assessment, environmental-impact study and system-impact study are under way and are expected to be completed within the year,” it said.
The term of the service contract is 25 years, extendable for another 25 years.

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