Philphos sees P500-M profit this year

Boosted by a notable improvement in fertilizer prices, the Philippine Phosphate Fertilizer Corp. (Philphos) is projecting a profit of around P500 million this year after a three-year rehabilitation period.

Philphos chairman Jose Ch. Alvarez said the company has become profitable starting last year when it posted a net income of P300 million following a turnaround in the fertilizer company’s operations.

This year’s performance is expected to be strong following a significant improvement in fertilizer prices, Alvarez said.

The group of Alvarez took over Philphos in late 2000 after acquiring the government’s 40-percent stake in the fertilizer firm for P3.035 billion.

Philphos was a joint venture of the government and the Republic of Nauru.

"Philphos was a losing proposition for the government for 18 years," Alvarez said.

In its first year of operation under the new management, Alvarez said, Philphos still incurred a loss of P607 million. However, for 2002, Alvarez said, Philphos was able to post a modest profit of P300 million.

Alvarez said he has already spent around $30 million to rehabilitate and turn Philphos around.

Philphos’ fertilizer production is sold both domestically and exported to China, Malaysia, Indonesia and Thailand.

Philphos has the largest and most modern phosphatic fertilizer plant in Asia. Its plant is located in Isabel, Leyte with a capacity of one million metric tons per year.