Premiere Horizon Improves Financial Position in the First Half of 2021 Despite Losses

Premiere Horizon Alliance Corporation (PSE: PHA) reported a Net Loss of PhP43.4 million as of June 2021, a 10.34% improvement compared to the PhP48.4 million Net Loss in June 2020. Revenues were 4.5% higher at PhP184 million compared to PhP176 million last year in the same period. In June 2020, mining services revenue accounted for 72% of the revenue with more than PhP120 million. This year, mining services is only 43% at PhP83 million due to limited operations because of the COVID-19 restrictions in Dinagat Island. Real estate sales is higher this year at PhP100 million compared to the PhP49 million last year signaling an improvement in the real estate sector.

It is important to note that PHA’s financial position has greatly improved in the 1st half of 2021 despite the losses with the equity infusion from the new investor group. Total equity posted a hefty 22% increase from PhP1.21 billion to PhP1.48 billion. The debt to equity ratio improved by 31% to 1.54X compared to 2.21X in December 2020. Current ratio also increased by 10% from 0.76 to 0.83.

PHA’s financial position is expected to improve further in the succeeding periods especially with the PhP378.7 million debt to equity (D/E) conversion announced last month and the planned SquidPay Technology Inc. (SPT) fold-in. The PhP378.7 Million conversion will result in an estimated D/E ratio of 1.02X, a 34% improvement compared to the current 1.54X. Likewise, the planned SPT fold-in is estimated to result in further improvement in the D/E ratio to 0.76X. Also, additional equity infusion is expected from the Put Option Agreement with LDA Capital.

Although some of the planned projects are again slightly delayed due to the third wave of lockdown and ECQ in most parts of the country, PHA is confident that the mining activities of its subsidiary, Premiere Georesources and Development Inc. (PGDI) will be able to resume normal mining operations this second half of the year. PHA’s real estate subsidiary in North Luzon, Goshen Land Capital, Inc. (GLCI) continues to expand its portfolio and is launching this month a vertical project in Baguio City’s commercial business district. West Palawan Premiere (WPP), the tourism development subsidiary, is also starting a residential beachside project in Puerto Princesa City. Both real estate subsidiaries augur well for the investments of PHA.

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