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BASIC Energy Corp. said its net income in the first three months
this year fell three-folds as the company began front-loading
expenses for its venture into biofuels.
In its unaudited financial report submitted to
the Philippine Stock Exchange, Basic Energy reported a 216-percent
drop in earnings to P15.8 million year on year. The company’s
revenues however increased by about 57 percent to P3.1 million. Its
petroleum operations turned in no revenues for the quarter.
Formerly Basic Petroleum Corp., the company is
primarily engaged in oil and gas exploration as well as the
development and production of biofuels and other alternative and
renewable energy resources.
The company also maintains holdings in other
industries such as information technology, real estate, logistics,
insurance, and finance. Besides this, company officials earlier
indicated plans to revive its stake in the mining industry.
The company blamed its lower earnings on a
“substantial increase in general and administrative expenses.”
It began hiring additional personnel in the
second quarter of last year in preparation for its foray into
biofuels and alternative energy production.
In light of its preparations for its entry into
biofuels, Basic Energy’s costs and expenses for the first quarter
this year surged 168 percent to P18.5 million.
The company earlier signed separate agreements
with Chevron Philippines, Inc. and Pilipinas Shell Petroleum Corp.
for joint studies on the feasibility of an ethanol supply contract.
Basic Energy’s unit Zambo Norte BioEnergy
Corp. (ZNBC) is the developer, owner and operator of a P2.8-billion
planned “greenfield” project consisting of a dedicated sugarcane
farm to be developed in Zamboanga del Norte and a fully integrated
ethanol facility.
The company is also planning to raise capital
through a follow-on offering. The money raised would be used to
construct two ethanol plants worth $2 billion.
Basic Energy’s shares closed flat Monday at
P0.25.
-- Euan Paulo C. Ańonuevo
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