Trans-Asia profit rises 43% amid sales gains

Posted on August 19, 2016
http://www.bworldonline.com/content.php?section=Corporate&title=trans-asia-profit-rises-43%-amid-sales-gains&id=132157

TRANS-ASIA Oil and Energy Development Corp. posted a 43% rise in first-half consolidated net income to P542 million as electricity sales and available energy increased, it told the stock exchange on Thursday.

In a disclosure, the energy arm of Philippine Investment Management, Inc. said revenue from the sale of electricity grew by 11% to P7.1 billion during the half.

“This improvement was largely brought about by higher energy sales in the Company’s power supply business,” said Trans-Asia, which is primarily engaged in power generation and supply.

For the second quarter, net income slipped nearly 12% to P276.47 million as costs and expenses rose almost 19% and outpaced the 13% rise in revenues. Interest and other charges also increased.

Net income attributable to the parent company dropped by 12% to P277.36 million.

In February, the listed company started the commercial operation of the second 135-megawatt (MW) circulating fluidized bed coal-fired power plant of subsidiary South Luzon Thermal Energy Corp. It came less than a year after it launched in April 2015 the first unit, which also has a capacity of 135 MW.

Two power barges also started operating in February 2016, while a third one is going through comprehensive rehabilitation work ahead of its commercial run within the second half of the year.

Trans-Asia said its subsidiary Trans-Asia Renewable Energy Corp. delivered 61.3 gigawatt-hours of wind-powered electricity during the period through its 54-MW wind farm in San Lorenzo, Guimaras province.

The company said its affiliate Maibarara Geothermal, Inc. operated its geothermal power plant at a high level of capacity during the period except for mandatory maintenance in February.

In the first quarter, the Maibarara project awarded the engineering, procurement and construction contract for its 32-MW line two expansion in time for a target run by the second half of next year.

Trans-Asia said expansion plans are underway for its renewable energy projects, which include new wind farm installation prospects at Sibunag, Guimaras and Ballesteros, Cagayan.

The company, which has secondary investments in petroleum and mineral exploration, also said that it was pursuing possible overseas oil and gas exploration opportunities to supplement local service contracts.

Trans-Asia has an electricity supply agreement with Guimaras Electric Cooperative, Inc., the lone electricity distributor in Guimaras using its 3.4-MW bunker C-fired diesel generator power station on the island. It has a license to operate as a retail electricity supplier that allows it supply electricity to the contestable market, which are mostly big power consumers.

On Thursday, shares in the company closed up 1.29% to P2.35. -- Victor V. Saulon