Phinma Energy profit declines 74% in 2017

Phinma Energy Corp. posted a 74 percent drop in net earnings in 2017 due to the absence of non-recurring gains in the previous year, aggravated by intense retail competition in the retail electricity market.

Phinma Energy reported a consolidated net income of P347 million last year, significantly lower than the P1.383 billion profit in 2016.

The company said the 2016 numbers included a non-recurring income of P472 million representing gains on the sale of Phinma Energy’s five percent share in South Luzon Thermal Energy Corp. (SLTEC)’s to Axia Power Holdings Philippines Corp.

It also realized gains following the sale of transmission lines in Guimaras and La Union to the National Grid Corp. of the Philippines (NGCP).

Meanwhile, it recorded approximately P830 million in recurring income from electricity supply and income generated from independent power producers, and P81 million in financial and other income also in 2016.

Further pulling down its earnings last year was the heightened competition in the retail market, Phinma Energy said.

“Margins in the electricity supply business were challenged by continued low market prices due to the competitive supply environment,” it said.

Despite this, Phinma Energy said it ended the year as the second largest single electricity supplier with a market share of 12.2 percent.

Phinma Energy – formerly called Trans-Asia Oil and Development Corp. – has been a licensed retail electricity supplier (RES) and wholesale aggregator since 2006.

It sources its supply from its portfolio of power generation projects, namely the 54-megawatt (MW) wind farm in San Lorenzo, Guimaras completed in 2014, the 2x135-MW South Luzon Thermal Energy Corp. (SLTEC) coal plant in Calaca, Batangas completed in 2015 and in 2016.

It also owns Power Barges 101, 102 and 103 in February last year, which has a combined capacity of 96 MW.