Roxas Holdings incurs smaller loss
Sugar and ethanol producer Roxas Holdings, Inc. (RHI) reported a lower net loss of P496 million in the first quarter of 2022 compared with the net loss of P574 million in the same period last year.
“While the Group’s revenues were higher last year, these gains were adversely affected by the contracted milling operations in Central Azucarera Don Pedro, Inc. (CADPI) resulting in lower tons canes milled, and the significantly higher fuel costs for the refinery operations,” said RHI Chairman Pedro E. Roxas.
Ethanol production of San Carlos Bioenergy, Inc. (SCBI) is ahead versus last year, due to an earlier start of operations.
CADPI’s milling operations were significantly hampered by the decline in the supply of sugarcane, particularly in the Batangas area due to Typhoon Odette (Rai) which hit the country late last year.
The Sugar Regulatory Administration (SRA) reported a decline in raw sugar production, by 7.9 percent in the third week of April. Its final crop estimate for the current crop year, which ends in August, is for a further drop to 1.98 million MT from their earlier estimate of 2.07 million MT as of January.
“Despite the challenges faced in the Batangas business particularly in the mill-side, the effect on CADPI’s gross profit was tempered by improved yields and higher refined sugar production coupled with an increase in tolling arrangements,” said RHI President and CEO, Celso T. Dimarucut.
He added that, likewise, CADPI’s boiler conversion project, enabling the refinery to extend its period of operation, was completed in January 2022.
The gains from this project, in terms of increase in refined sugar production, will become more apparent in subsequent quarters.
“Moreover, the initiatives that were implemented in previous years, such as, manpower right-sizing and rationalization of loans, have resulted in decreases in operating expenses and interest expenses,” Dimarucut said.
He noted that, “Overall, RHI remain focused on implementing solutions to address the various factors causing volatility and higher costs in the industry and the Group.”