AbaCore incurs a net loss P13-M
ABACORE Capital Holdings, Inc. suffered a net loss of 13.24 million pesos in the first quarter, reversing its net profit of 74.8 million pesos attributable to owners a year ago, after a drop in income during of the period.
“The company recorded a gross income of 2.09 million pesos, which is 98% less than the gross income of 104.07 million pesos for the comparative period of last year. This is mainly due to the fact that the aggregate amount from the previous year came from trading gain of 103.79 million pesos, which represents nearly 100% of gross revenue,” the company said in a statement on Monday.
The company also said that in 2021 it returned to profitability with an overall net income of 5 billion pesos, after a net loss of 101 million pesos the previous year.
The company said in a statement that its financial results for 2021 reflect a “more stable operating environment and the strength of the company’s franchise.”
“ABA (AbaCore’s ticker symbol) financial results for 2021 have been positively impacted by secular trends involving Batangas’ economy, with more companies expanding their operations in the province given its attractive proposition as a economic power,” said President Raul B. De Mesa.
The holding company said that of its profits, about 580 million pesos was regular income, while the rest was an adjustment to the fair value of its properties following the various partnerships entered into with investors.
“As such, land values in Batangas have appreciated significantly in recent years, increasing ABA’s bottom line and increasing our shareholders’ return on their investments,” Mr. De Mesa said.
In 2021, ABA entered into a $100 million joint venture with Starfleet Innotech to provide land to the New Zealand-based asset management company for a resort-like condotel development.
It is also continuing with plans to build ABA Energy Hub, a 103-hectare energy facility in the province. The company has also agreed to provide land to a subsidiary of A. Brown & Co., Inc. for the development of a liquefied natural gas facility.
“ABA has a land reserve of approximately 330 hectares, which gives us the flexibility and ability to partner with various entities interested in investing in Batangas,” Mr. De Mesa said.
“Our 2021 financial results demonstrate that we have been successful in pursuing partnerships that fully leverage the potential of Batangas, and we expect this success to continue in 2022 as more investors and businesses recognize the economic viability of Batangas. province,” he added.
ABA is a holding company with interests in real estate, tourism, financial services and energy.
On Monday’s trading, ABA shares rose 7.63% or ten centavos to end at P1.41.