Prime Orion nearly triples 2nd quarter profit
PRIME ORION Philippines, Inc. (POPI) almost tripled its attributable profit during the second quarter of 2018, lifted by its expansion into the industrial park and real estate logistics businesses.
In a regulatory filing, the listed Ayala-led company reported a net income attributable to the parent of P47.7 million, 188% higher than the P16.5 million it posted in the same period a year ago. Revenues meanwhile surged 547% to P745.8 million.
This pushed POPI’s attributable profit for the first half of the year to P55.4 million, more than double the P25.8 million it generated in the first six months of 2017. The company’s revenues also jumped 240% to P925 million.
POPI attributed the increase to its acquisition of a majority stake in Laguna Technopark, Inc. (LTI) last April, expanding its investments in the 460-hectare Laguna Technopark in Santa Rosa and Binan as well as the 135-hectare Cavite Technopark in Naic.
“We are very happy with our first half result. With the recent acquisition of a majority stake in Laguna Technopark, Inc., we continue to evolve and transform POPI into a real estate logistics-focused business,” POPI President and Chief Executive Officer Maria Rowena Victoria M. Tomeldan said in a statement.
Moving forward, POPI will be developing a new phase of Laguna Technopark which will have an 11-hectare warehouse and logistics facility with more than 50,000 square meters (sq.m.) in gross leasable area (GLA).
The company will also embark on the redevelopment of its 14-hectare Lepanto warehouse in Calamba, Laguna. This will add 110,000 sq.m. of leasable area to the facility by 2022, as it looks to capitalize on the Lepanto warehouse’s location.
“We believe we are taking concrete steps towards jobs and skills creation. These will hopefully empower the local economy and benefit more communities. Moving forward, we plan to grow beyond our current footprint of Tutuban, Muntinlupa, Calamba, Sta. Rosa, and Naic to further develop industrial estates and logistics facilities,” Ms. Tomeldan said.
Aside from its expansion into logistics facilities, POPI is currently redeveloping the Tutuban Center in Divisoria Tutuban complex. The company plans to double the commercial center’s 60,000 sq.m. GLA in the coming years, alongside converting the 20-hectare property into a mixed-use development with retail, logistics, offices, and other support services.
The Tutuban Center redevelopment will allow the company to take advantage of the NorthSouth Railway Project of the Philippine National Railways. POPI said that Tutuban will be at the center of the North Line, South Line, and LRT-2 West Rail projects being mapped out by the government.
Shares in POPI gained 22 centavos or 7.97% to close at P2.98 each at the stock exchange on Wednesday. —