Phinma triples capex to P11B
April 20, 2014
The Manila Times
April 20, 2014 9:39 pm
by MADELAINE B. MIRAFLOR
Phinma Corp. is allocating close to P12 billion for capital expenditure (capex) this year, about three times the amount it spent in 2013, and bulk of it will go to the group’s power projects.
“The capex for the Trans Asia Group is P10.8 billion. Let’s just say P11.4 billion is the total for the entire group,” Regina Alvarez, senior vice-president for Finance of Phinma, said.
In 2013, Phinma allotted only P3.9 billion for capital expenditure, which was primarily intended to fund the construction of a power generation plant.
Some of the business units of Phinma Corp. are Trans-Asia Oil and Energy Development Corporation (TA), Union Galvasteel Corporation (UGC), Phinma Education Network, Phinma Property Holdings Corp., Fuld & Co., and Fuld Philippines.
Asked what units are expected to drive the group’s overall performance for this year, Alvarez said it “would be energy and also education.”
“Other groups like steel will have some improvements in income. Properties, they have a lot of projects this year,” she added. “All operating units will do well this year.”
Phinma saw a turnaround in profitability in 2013. From a net loss of P91.6 million, the listed firm registered consolidated net income of P261.7 million. Revenue also inched up by 6 percent to P4.8 billion in 2013.
The group’s power arm, TA, showed positive operating results, with a 22-percent increase in income to P150.2 million in 2013, while UGC posted a 48-percent increase in net income to P103.8 million in 2013.
Phinma Education, on the other hand, also reported a higher income of P160.8 million during the period, with enrollment growing by 16 percent to 31,114 students, while Phinma Property registered net income of P15.5 million in 2013.
However, Fuld & Co. and Fuld Philippines posted a combined net loss of P35 million due to one-time expenses incurred from launching its research business in Asia.