Ethanol and sugar producer Roxas Holdings, Inc. posted a Php239.8 million net loss in the first quarter of its fiscal year, which ended on December 31, 2020.
The loss in the said period, which also accounted for the Php247 million non-recurring gain from the sale of an investment, was much more than the Php36 million net loss it had year-on-year.
RHI, which owns San Carlos Bioenergy, Inc., (SCBI) has recently re-organized its operations following the sale of its assets in La Carlota City, Negros Occidental in September.
In a statement, RHI Chairman Pedro Roxas pointed out that the first quarter of operations for the group’s remaining business units showed a loss as there were very limited transactions for the period given the seasonal nature of the business.
“We started the distillery operations of [SCBI] in October 2020, while milling in Central Azucarera Don Pedro, Inc. began in mid-December 2020, after completing the off-season repairs and maintenance activities of these plants. This is the inherent seasonality in the Group’s operations which coincides with the availability of sugarcanes,” Mr. Roxas said.
Meanwhile, RHI President and CEO Celso Dimarucut said that the Group remains optimistic that the operations of its remaining businesses will perform better than last year despite the challenges facing the industry, including the higher than usual precipitation expected this year brought about by the La Niña phenomenon.
RHI’s total ethanol production for the first fiscal quarter of 5.66 million liters was 75% higher than the 3.26 million liters produced during the same period last year.
Dimarucut added that the holding firm expects to complete next quarter the arrangements with major creditor banks to term out existing short-term loans.
First Pacific of business tycoon Manny V. Pangilinan controls RHI. Pangilinan himself sits as RHI’s Vice Chairman. First Pacific also has interests in the Manila Electric Company (MERALCO) and Global Business Power through Metro Pacific Investments Corporation (MPIC).
MPIC, together with Singapore-based Keppel Infrastructure Trust, recently completed the acquisition of Subic-based Philippine Tank Storage International Holdings, Inc., which owns the country’s largest petroleum storage facility. Pangilinan is also involved in oil and gas exploration via PXP Energy Corporation, which has ventures in the West Philippine Sea.