Trans-Asia Oil posts P236M in 9-month profit

Trans-Asia Oil and Energy Development Corp. swung back to profitability in the first nine months this year, as it posted a net income of P236 million from a net loss of P98.7 million a year ago, due to a surge in trading revenue.

In a filing with the Philippine Stock Exchange (PSE), Trans-Asia Oil said its total consolidated revenue rose to P835.7 million in the first three quarters, from P732.8 million in the same period last year.

The increase was attributed to the posting of P230.4 million in net trading revenue, as against the P135-million net trading loss it registered in the same period in 2010.

“Lower wholesale electricity spot market (WESM) prices in 2011 provided the company with opportunities to buy electricity at lower prices to supply to its customers. Also, the availability of additional plant capacity in 2011 protected the company from higher WESM prices while providing opportunities to sell excess capacities in the market,” Trans-Asia Oil said.

To explain, the PSE filing showed gross trading revenue reaching P1.33 billion in the first nine months this year, while the cost of power purchased was only P1.10 billion. In the same period in 2010, gross trading revenue stood at P394.5 million while the cost of power purchased was much higher at P529.5 million.

Dividend income also improved to P15 million from P7.1 million the previous year. Cash dividends were received from Asian Plaza Inc. amounting to P8.7 million in 2011, compared with P400,000 a year ago. While revenues rose, consolidated costs and expenses dropped to P576.5 million in the first nine months, from P864.7 million in the same period last year.

Most notable was the 49-percent drop in the company’s share in the cost of electricity sold by a joint venture to P271.6 million from P535.2 million, as a result of lower energy generated.

Trans-Asia Oil has a 50-percent interest in Trans-Asia Power Generation Corp., which is engaged in power generation and electricity trading.—Amy R. Remo