Phinma Corp. bares expansion plans for units
March 22, 2016
By Krista A.M. Montealegre
March 22, 2016
PHINMA CORP. has charted expansion plans for its power generation, education, property and hotel businesses, riding on the sustained high-growth trajectory of the Philippine economy, the holding firm said in a regulatory filing.
Affiliate Trans-Asia Oil and Energy Development Corp. (TA Oil) is completing the rehabilitation of three power barges with total capacity of 96 megawatts (MW), which were acquired from the Power Sector Assets and Liabilities Management Corp. This would bring its total generation capacity to 626 MW by the end of the year.
Last month, TA Oil commenced the commercial operations of its second 135-MW clean coal-fired power plant in Calaca, Batangas.
In 2016, TA Oil is targeting to finish the 12-MW expansion of affiliate Maibarara Geothermal, Inc. in the third quarter.
Moving forward, the company, which is changing its corporate name to Phinma Energy Corp., said it will continue to develop more coal, wind and geothermal projects in line with a plan to double its existing generation capacity to 1,200 MW over the next five years.
Phinma Education Holdings, Inc., the holding firm for its investments in the education sector, remains on the lookout for more schools after the acquisition of Southwestern University in Cebu, the holding firm said.
Phinma Education said it is all set for the entry of the first batch of senior high school students across its five schools. Likewise, it would complete construction of Career Academy Asia’s Cebu and Davao branches, which alongside the Manila branch will begin accepting senior high school students later this year.
“Rather than a challenge, Phinma Education views K to 12 as an opportunity to enter new markets and increase system-wide enrolment in the long term,” the holding firm said, referring to the enhanced Kindergarten to Grade 12 reform program.
After its foray into Davao last year, real estate arm Phinma Property Holdings Corp. is moving to another emerging urban center with the launch of a new tropical-themed condominium project in Sta. Rosa, Laguna in the first quarter of the year. The company is exploring projects in Cebu, Naga, Lipa, Cagayan de Oro and Bulacan.
Coral Way City Hotel Corp., an investee of Phinma and owner of Microtel by Wyndham in Mall of Asia, is scheduled to finish the construction of a new Tryp by Wyndham hotel. The new select service 195-room hotel will target a “younger and trendier” customer base, Phinma said.
After expanding its polyurethane (PU) line in Davao last year, Union Galvasteel Corp. will commission its expanded PU line in Calamba, Laguna in the first quarter of 2016, enabling the company to be a major player in the PU industry and a market leader in this fast growing segment. Higher value PU products are used in temperature controlled facilities.
Phinma is expanding its businesses against the backdrop of a strong Philippine economy growing by at least 6% this year, driven by robust public construction and the recovery in exports.
“Continued low oil prices and low inflation, further supported by election related spending, should lead to strong private consumption, to hopefully offset any concerns arising from uncertainty over the upcoming national elections,” Phinma said. Shares in Phinma added four centavos or 0.35% to close at P11.52 each on Tuesday.