Greenergy net profit surges to P2.8 billion

Published April 23, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Greenergy Holdings, Inc., a listed firm led by businessman Antonio L. Tiu, posted a consolidated net income of P2.8 billion last year from just P21.3 million in 2017, buoyed by one-time gains and reclassification of investments.

In a disclosure to the Philippine Stock Exchange, Greenergy said the increase is due to “the results of gain on reclassification of investment in associate to FVOCI (Fair Value Through Comprehensive Income) amounting to P2.6 billion, gain on deemed disposal of investment in an associate of P186.42 and gain on sale of investment in associate amounting to P78.97 million.”

Net of these gains, Greenergy’s gross income was at P1 million, equivalent to 29 percent of revenue and still a marked turnaround from 2017 when the company’s gross loss was at P1.49 million or -287.61 percent of revenue.

The group’s revenue for 2018 amounted to P3.45 million, an increase from the revenue generated in 2017 which total P0.52 million.

This was due to the increase in agri-tourism revenue and rental income from its nine-hectare property situated in Rosario, Batangas.

Moving forward, Greenergy expects gross profit margins to improve significantly in the coming years when returns on the company’s investments become visible.

This will be due to the increase in service income from agri-tourism, sale of harvests from greenhouse projects of one of its subsidiaries and potential project with Thebizlink Co. Ltd that will generate sufficient cash flows.

The project with Thebizlink Group is for the development of a transport hub, smart-farming agriculture area, smart-city commercial and mixed-use developments and other related developments.

With these investments, the management of the group will continue to generate sufficient cash flows to complete its current and future plans.

Last April, Greenergy also partnered with a Chinese multinational company for the distribution of solar powered products in the Philippines.