Phinma Energy swings to P76.4-M loss in H1

Phinma Energy Corp. swung to a net loss of P76.4 million in the first half of the year from a net income of P298 million in the same period a year ago due to continued low prices in the competitive energy supply market.

In a disclosure to the Philippine Stock Exchange, Phinma Energy also attributed the net loss to higher costs resulting from excise taxes imposed by the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

This year, the company also recognized P80 million in actual and provisional costs on soon-to-expire oil and gas service contracts.

The company also posted a 2.3 percent decline in consolidated revenues in the period to P8.1 billion from P8.3 billion last year.

Phinma Energy said the decrease in revenue from sale of electricity was attributable to the lower energy sales from the parent company’s power supply business as a result of expiration of some customers’ contracts.

In contrast, rental income for the period grew 88 percent to P316 million from P168 million due to a new rental contract entered into by the parent company.

“Moving forward, the company will continue initiatives to improve margins by expanding its wholesale customer portfolio and lowering its cost of power,” Phinma Energy said.

South Luzon Thermal Energy Corp. (SLTEC), a 45 percent owned affiliate, generated 817 gigawatt hour of electricity, posting a net income of P827 million in the first half of the year.

Another affiliate, Maibarara Geothermal Inc., commenced operation of its Line 2 geothermal unit in March 2018, producing a total of 77 gwh of geothermal energy from its two units in the first half of the year.

“Phinma Renewable Energy Corp. also produced 53 gwh of clean energy from its 54 megawatt wind farm in San Lorenzo, Guimaras and recorded P115.8 million net income in the first half of the year,” the company said.

Phinma Energy said it continues to pursue renewable energy projects, including a 40 MW expansion of its wind farm in Guimaras as well as a 45 MW solar farm in Padre Garcia, Batangas.

“Negotiations with offtakers on bilateral contracts for these projects are on-going,” it added.

Phinma Energy has also joined forces with sister company Union Galvasteel Corp. to promote solar rooftop generation, with installations completed in Phinma Cagayan de Oro College and, by the end of August, in Phinma University of Pangasinan.