MRC Allied net loss grows to P26M

MRC Allied Inc.’s net loss widened by

nine months of 2018 from P18.47 million in the same period last year.

In a recent disclosure, the listed power company blamed the increased loss on a “related party transaction

to support the general and administrative expenses of the company and the

Interest on these loans hit P812,000, adding P7.1 million to the net loss.

Total assets stood at P1.3 billion in January to September, while total liabilities reached P820.4 million.

Menlo Capital, an investment house owned by the Bitanga and Osmeña families, owns 51.9 percent of MRC Allied.

In January, the Securities and Exchange Commission (SEC) granted Menlo Capital’s request to be exempted from the mandatory tender offer rule covering the 4.4 billion common shares issued by MRC Allied.

Menlo cited in its request the deed of assignment with share subscription and conversion of debt-to-equity transaction that it and MRC entered into on July 19, 2013.

This transaction allowed MRC Allied to reduce its liabilities.

Incorporated in 1990, MRC Allied is a property developer that ventured into the energy sector last year through various renewable energy (RE) initiatives.

The company aims to expand its energy portfolio by generating 10,000 megawatts (MW) of RE by 2022.

MRC Allied’s shares added 1 centavo or 2.94 percent to end at 35 centavos each on Friday, surpassing the Philippine Stock Exchange index’s 1.88-percent gain.