Abacore seeks to reverse losses with unit’s projected P958M in sales
MANILA, Philippines—Holding firm Abacore Capital Holdings is seen to benefit this year from a new revenue stream to be unlocked by investment house subsidiary, Philippine Regional Investment Development Corp. (PRIDE), from the group’s new energy hub project in Simlong, Batangas province.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Abacore said PRIDE would likely generate P958 million in gross sales from the energy hub this first semester through its operating units, Adroit Realty Corp. and San Isidro Catholic Memorial Park Development Corp.
Adroit and San Isidro are expected to book earnings from seafront properties, through which PRIDE and affiliates are estimated to secure P728 million in net profit in addition to P100 million in income to be booked from the sale of marketable securities.
These potential earnings are larger than parent Abacore’s prepandemic full-year profit and can bring the holding firm back to profitability. Last year, Abacore incurred P89.14 million in net loss, a reversal of the P618 million in net profit in 2019.
PRIDE was also expected to book a profit from its partnership with SquidPay Technologies in the conversion and operation of its PhilStar Development Bank into a Batangas-based digital bank, the disclosure said.
Abacore said PRIDE was expecting even bigger growth resulting from the move of logistics, energy and tourism-based companies to Batangas.
With the “Build, Build, Build” program of the Duterte administration, Batangas has been seeing growth in industrial and tourism-based industries, Abacore said. This has also led to rising investment in Batangas real properties in anticipation of capital gain.
“Abacore, PRIDE and all its affiliates are in the best position to strategically take advantage of the opportunities presented with the development and growth of the province of Batangas as the next metro hub in the Calabarzon area,” the disclosure said.
PRIDE, which has an authorized capital stock of P1 billion and an asset base of P2.5 billion, aims to develop projects to uplift the countryside.
Earlier this year, Abacore announced its Abacore Energy Hub project in Batangas would finally proceed after some delays caused by the pandemic.
The properties of Abacore affiliates will be consolidated into Simlong Energy Development Corp. (SEDCO), which will be majority owned by Abacore. This unit will enter the energy business.
It was earlier announced that Vires Energy, a wholly owned subsidiary of A. Brown Co. Inc. that had obtained a notice to proceed with its liquefied natural gas (LNG) and power plant facility, would set up operations in Batangas.
Abacore currently has interests in the leasing of gaming equipment, gold and coal mining, real estate and financial services.
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