PHINMA Energy Corp.

Phinma Energy’s bottom line plunges to 75%

PHINMA Energy Corp.’s net income plunged 75 percent to P347 million last year, from P1.383 billion in 2016.

In its disclosure to the Philippine Stock Exchange, Phinma Energy said the “margins in the electricity supply business were challenged by continued low market prices due to the competitive supply environment.”

The company, formerly Trans-Asia Oil and Energy Development Corp., said the income it registered in 2016 was mainly due to several transactions that year.

For one, it was in December 2016 when the company booked a P472-million gain on the sale of its 5-percent share in South Luzon Thermal Energy Corp. to Axia Power Holdings Philippines Corp. The company also sold that year transmission lines in Guimaras and La Union to the National Grid Corp. of the Philippines.

Also in 2016, Phinma Energy booked approximately P830 million in recurring income from electricity supply and income generated from independent power producers, and P81 million in financial and other income.

Despite a dismal performance last year, Phinma Energy ended 2017 as the second-largest single electricity supplier with a market share of 12.2 percent. The company also declared regular dividends of P0.04 per share for shareholders as of record date of March 14 and payment on April 5.

The company earlier entered into a Solar Energy Service Contract with the Department of Energy, granting it the exclusive right to explore, develop and utilize the solar energy resource in a 648-hectare area in the municipality of Bugallon, Province of Pangasinan.

“Predevelopment activities, such as yield assessment, environmental-impact study and system-impact study are under way and are expected to be completed within the year,” it said.

The term of the service contract is 25 years, extendable for another 25 years.


PHINMA Energy to enter downstream oil sector

CONGLOMERATE Phinma Corp. said its unit PHINMA Energy would be venturing into the downstream oil industry.

PHINMA Energy’s entry into the downstream sector could potentially help cater “to the fuel requirements of its own diesel plants,” the parent company told the local bourse on Monday.

The listed holding firm noted PHINMA Energy would remain on the lookout for “greater participation in the retail electricity market using its existing portfolio of generating plants.”

PHINMA Energy will continue to “develop additional conventional and renewable energy projects as market and regulatory conditions merit” amid its target to be the “preferred electricity supplier of choice” in the country.

“Moving forward, Phinma Energy recognizes the need to diversify its generating portfolio, particularly in light of an oversupply in baseload coal plants foreseen over the next several years,” it said.

In October last year, Phinma Energy revealed plans to explore opportunities and expand its portfolio with gas and hydropower projects.

PHINMA President and Chief Executive Officer Francisco Viray told reporters the company was mulling putting up four power plants–three gas-fired and one hydroelectric–with a total capacity of 925.6 megawatts.
These projects are the 383-MW Sta. Ana CCGT power plant in Cagayan, the 383-MW Sual CCGT floating power plant in Pangasinan; the 138-MW Argao floating CCGT power plant in Cebu, and the 21.6-MW Ilog hydroelectric power plant in Negros Oriental.


Phinma enters fuel-supply business
PHINMA Energy Corp. is going into the fuel-supply business that will primarily serve the requirements of its energy arm.

During the company’s stockholders’ meeting on Wednesday, Phinma announced that its subsidiary, One Subic Oil Distribution Corp., will enter the fuel- supply business as a means of mitigating the domestic fuel-supply risk.

The entry into this business will provide the company with an immediate diversification platform.  In the future, Phinma President Francisco Viray said the company “will exploit opportunities along the value chain.”

At end-2017, One Subic Oil completed commercial and technical analysis of this new business venture. It is currently securing the permits necessary to initiate the short construction period for the required facility.

Viray said the business will be operational within the year.

“We are just waiting for the necessary permits from Subic Bay Metropolitan Authority.. But it will be this year,” he added.

The facility will initially be able to accommodate 16 million liters of  fuel. Phinma’s energy requirements to fuel some of its peaking plants is estimated to use up 50 million liters. These include the plants of CIP II Power Corp., Phinma Power Generation Corp., One Subic Power Generation Corp. and power barges 101 and 102.

Phinma’s diesel plants, officials said, they will continue to be  a valuable source of power to the Luzon grid.  Diesel plants are capable of being dispatched immediately at short notice, making them suitable for ancillary-service operations.

Phinma’s total attributable capacity in 2017 stood at 636.4 megawatts from 639.4 MW in 2016.


PHINMA Energy withdraws from geothermal service contract in Leyte

PHINMA Petroleum and Geothermal, Inc. (PPG) has announced its withdrawal from a service contract that sought to explore the possibility of geothermal energy in Leyte.

As reported by Business World Online in the Philippines, PHINMA Petroleum and Geothermal, Inc. (PPG) has announced its withdrawal from a service contract that sought to explore the possibility of geothermal energy in Leyte to the stock exchange in Manila.

The energy exploration company, a unit of Phinma Energy Corp., said it would recognize a loss of P32.7 million ($620,000) for the write-off of its share in expenditures incurred so far in Service Contract No. 51 (SC 51) in Eastern Visayas. “This is equivalent to 22% of the Company’s total assets as of March 31, 2018,” the company said.

PPG has also informed the Securities and Exchange Commission on Wednesday that it had notified the Department of Energy (DoE) of its withdrawal from SC 51.

The company has a 6.67% participating interest in SC 51, but the stake could have been adjusted to 33.34% upon the DoE’s approval of the withdrawal of its original operator Otto Energy Investment Ltd., a unit of Australia-listed Otto Energy Ltd.

Otto Energy on May 5, 2014 notified PPG and the other partners in the consortium that it had elected to withdraw from SC 51, a move which is subject to DoE approval.

On June 28, 2014, the Filipino partners requested the DoE to suspend exploration for a phase of the project from the date of Otto Energy’s withdrawal and until the approval of the company’s participating interest to the locals.

In March and December last year, the Filipino partners reiterated their intent to carry on with the exploration of SC 51. They further signed a deed of undertaking to pay the outstanding financial obligation of Otto Energy amounting to $124,763.

Otto Energy started in April 2012 a 100 km seismic program in the town of San Isidro, Leyte to pick the optimum location for the drilling of exploration block’s prospect.


...loss din ang report nito Sad

Phinma Energy swings to net loss in April-June

PHINMA Energy Corp. on Wednesday reported a net loss attributable to equity holders of the parent firm of P91.57 million in the second quarter, reversing last year’s income of P221.87 million in the same quarter last year as revenues slipped while cost and expenses rose.

Revenues during the quarter stood at P4.42 billion, lower by 6.2% compared with the P4.71 billion recorded in the same three months last year. Cost and expenses went up 4.3% to P4.89 billion from P4.69 billion a year ago.

In the first half, Phinma Energy posted a net loss of P48.26 million, a reversal of last year’s P300.29 million net income attributable to the parent firm’s equity holders.

Revenues during the semester fell to P8.13 billion, lower by 2.3% compared with the P8.32 billion recorded in the same six months last year. Cost and expenses increased by 5.6% to P8.70 billion from P8.24 billion previously.

Including non-controlling interest, the company said consolidated net loss during the first six months was at P76.41 million from a net income of P298.17 million a year ago.

It attributed the reversal to the “continued low prices in the competitive energy supply market as well as higher costs resulting from excise taxes imposed by the TRAIN Law,” referring to Republic Act 10963 or Tax Reform for Acceleration and Inclusion.

“In 2018 the company also recognized P80 million in actual and provisional costs on soon-to-expire oil and gas service contracts. 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 in a statement.

South Luzon Thermal Energy Corp., a 45%-owned affiliate, generated 817 gigawatt-hours (GWh), translating in a net income of P827 million in the first half and paying P500 million in dividends.

Another affiliate Maibarara Geothermal, Inc. started operating its second geothermal unit in March 2018, producing a total of 77 GWh of geothermal energy from its two units during the semester.

The company’s subsidiary Phinma Renewable Energy Corp. produced 53 GWh of clean energy from its 54-megawatt (MW) wind farm in San Lorenzo, Guimaras. It registered P115.8 million in net income in the first semester.

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 said.

The company said it had joined forces with sister company Union Galvasteel Corp. to promote solar rooftop generation, with an installation completed in Phinma Cagayan de Oro College. Phinma University of Pangasinan will follow by end-August.


Phinma Energy sells 50% stake in solar subsidiary

PHINMA Energy Corp. has sold half of its stake in a solar roofing subsidiary to an affiliate in part to boost the unit’s capital base, while taking in a strategic partner with a complementary business.

In a disclosure to the stock exchange, the energy company said the sale of its 50% interest in subsidiary Phinma Solar Energy Corp. to Union Galvasteel Corp. was approved by its board on Nov. 6, 2018.

With the deal, Phinma Solar, formerly Trans-Asia Wind Power Corp., would be able to increase its capital base while Phinma Energy said “it will add a strong strategic partner who is a leader at complementing industry (roofing) and who possesses an extensive client base, and established nationwide distribution lines.”

It placed the initial payment for the sale at P180 million, with the balance upon the issuance of a Bureau of Internal Revenue clearance “or at a later date agreed by the parties in writing.”

Phinma Energy did not state the balance due but it said the number of shares to be sold are 225 million priced at P1 apiece. The disclosed price per share values the deal at P225 million, or a balance of P45 million after the initial payment.

Phinma Solar, a 100% subsidiary of Phinma Energy before the deal, is engaged in renewable energy generation, specifically focusing on solar rooftop generation.

“With its partner, PHINMA Solar will be technically and financially more capable to pursue its projects,” said Phinma Energy.

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