MANILA, Philippines - Investment
holding firm Phinma Corp. is set for the expansion of all its business units by
pursuing roughly P17 billion worth of new energy projects, property
development, hotel construction and schools acquisition.
The bulk of the capital will be
allotted to the power business, which will account for majority of the
company’s revenues by 2015, officials said.
The company also plans to pursue the
expansion of its power portfolio by 2015, said Francisco L. Viray, president of
unit Trans-Asia Oil and Energy Development Corp.
This includes the 54-megawatt (MW)
wind project in Guimaras, the 135-MW second circulating fluidized bed power
plant in Calaca, Batangas and another 20-MW geothermal power project in Batangas
and Laguna, Viray said.
“Power will be the biggest [in
investments]. In revenues, power also by 2015,” Viray said. To date, the power
business accounts for around a fifth of Phinma’s revenues.
But Phinma’s aspiration to be a niche
player in wind power generation will depend on the implementation of the
feed-in tariff (FIT) scheme.
“With the FIT, we can continue
developing other wind service contracts. Without that, we will have to suspend
development projects in those areas,” Viray said.
The FIT, whose implementation is
already delayed by almost three years, guarantees investments of renewable
energy firms through fixed rates that would be shouldered by consumers over a
set period of time.
Meanwhile, Phinma is expanding its
property business through new projects.
“We should have three or four projects
this year not including the socialized housing projects that we are doing with
the local government units,” said Phinma Properties president Willy J. Uy.
Total project cost for the three to
four projects composed of 6,562 units will be P5.7 billion, and will be
completed in the next three years, Uy said.
Phinma Properties expects to complete
the construction of 2,250 units this year, more than double the 1,000 units
last year and higher than the 1,400 units completed in 2010.
Uy said the company can launch even
six to 10 projects per year given its new equipment.
“There is a lot of competition right
now. A lot of competitors have gone to a similar project but buyers are
shopping around and we are still the cheapest,” Uy said.
For the schools business, Phinma
Education Network (PEN) is pursuing new acquisitions for more growth.
“We are in active talks with five
institutions,” said PEN chief Chito B. Salazar.
Phinma is into the schools business
through Araullo University, Cagayan de Oro College, University of Pangasinan
and University of Iloilo.
This is in line with the company’s
goal of growing the business to service 28,000 students next school year from
26,000 last year.
Acquisitions range at P80 million to
P120 million per school, with the first deal expected in the third quarter,
Salazar said.
For the hotel business, Phinma is
looking to reach more than 1,000 rooms from the current 597 rooms by 2014.
Investment is about P100 million for
each Microtel branch, Phinma said. New hotels include the 84 rooms in Libis, 66
rooms in Gen. Santos City, and 60 rooms each in tourist spots Bohol, Coron and
El Nido.
Phinma, formerly Bacnotan Consolidated
Industries, Inc., also owns Hong Kong-based One Animate, Ltd. and Union
Galvasteel Corp.
Profits of the company slumped to
P57.5 million last year compared with P640 million a year ago given weak demand
for steel and the decline in the animation business.
___________________________________________________________
