SOCResources swings to net loss on lower sales

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LISTED holding firm SOCResources, Inc. saw a net loss of P8.1 million for the first half of the year from a net income of P7.8 million last year as costs and expenses, although smaller than the previous period, outpaced sharply lower revenues.

Formerly South China Resources, Inc., the company was established in 1992 primarily to undertake oil and gas exploration. In 2003 it received approval from the Securities and Exchange Commission (SEC) to change its primary purpose to that of a holding company.

It currently has a wholly-owned subsidiary, SOC Land Development Corp. (SOC Land), which is engaged in the real estate business. SOC Land has two projects — Anuva Residences in Parañaque City and Althea Residences in Biñan City, Laguna.

In a disclosure to the Philippine Stock Exchange (PSE) on Friday, SOCResources said its revenues in the first half dropped by 73.5 percent to P31.3 million from last year’s P118 million, mainly due to lower residential sales at SOC Land.

Cost and expenses fell by 65.77 percent to P37 million in the first six months, compared to P109 million in the first half of 2016.

There was also a decrease in the market value of its equity holdings as of June 30, 2017, the company said.

Unit SOC Land booked a net loss of P7.9 million in the first half, reversing the net income of P10.8 million in the same period last year, as Anala posted sharply lower sales of P13.3 million, down 85 percent from last year’s P92.9 million.

“Most of the sold units in Anala have already been recognized in the previous years,” the company said.
Althea’s sales also shrank to P3 million from 2016’s P8 million, or a decrease of 62.5 percent year-on-year.

The company said other income decreased by 41.3 percent from P15.8 million in 2016 to P9.3 million in 2017.

These consist of late payment penalties, forfeited payments, interest earned on in-house financing and interest earned on short term placements.

General and administrative expense decreased by 32.7 percent from P22.1 million in 2016 to P14.9 million in 2017.

Selling and marketing expenses, however, rose 45.6 percent from P5.5 million in 2016 to P8.1 million as at the end of June 2017 due to the increase in the number of sellers for both the in-house and international sales group, the company said.

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