Anscor income down 91% after significant revenue fall

LISTED holding firm A. Soriano Corp. (Anscor) generated P165.65 million in attributable net income for 2020, declining by nearly 91% from P1.84 billion in the previous year due to “significantly lower” revenues.

In a regulatory filing on Tuesday, it reported a 24.8% fall in revenues to P7.56 billion from P10.05 billion.

Consolidated gross revenues amounted to P6.9 billion, dropping by 35.5% from P10.7 billion “mainly due to decrease in market value of FVPL (fair value through profit and loss) investments.”

Anscor’s net revenues from the sale of goods amounted to P6.45 billion, 21.4% lower than the P8.21 billion recorded in the previous year.

Revenues from services went down by 42.7% to P767.57 million from P1.34 billion.

The company’s dividend income also declined to P259.11 million, dropping by 30.6% from P373.59 million. Meanwhile, interest income slumped by almost 34% to P82.20 million from P124.48 million in 2019.

“Revenues of the resort and wire manufacturing operations were lower than last year as a result of community quarantine imposed by the government,” the company said in its disclosure.

Wholly owned wire and cable manufacturing subsidiary Phelps Dodge International Philippines, Inc. registered total revenues of P6.5 billion and a net income of P692 million for the year.

Anscor has a 62.3% stake in Amanpulo Resort operator Seven Seas Resorts and Leisure, Inc., which “broke even.” It reported total revenues of P646.3 million from last year’s P1.1 billion.

“The protocols developed by Amanpulo have become the ‘gold’ standard for the industry. In November, the Resort was allowed to increase its capacity to 75%, and to 100% in December,” Anscor said.

However, these results were “offset by another year of deep losses” of gas and liquefied natural gas (LNG) logistics company AGP International Holdings Pte. Ltd. (AG&P).

AG&P incurred a net loss of $103.2 million, its third consecutive year of posting losses, and recorded revenues of $96.8 million.

“Anscor remains very concerned with the slow development of its LNG operations and its weak financial performance,” the company said.

Anscor recorded the carrying cost of its 21.4% investment in AG&P in zero, “so as not to impact Anscor’s future financial results.”

On Tuesday, Anscor shares at the exchange went up by 1.21% or P0.08 to close at P6.68 apiece. — Keren Concepcion G. Valmonte