Roxas Holdings narrows net loss

MANILA, Philippines — Sugar and bio-energy firm Roxas Holdings Inc. (RHI) narrowed its net loss  to P939 million for its fiscal year 2021, from P2.36 billion  last year, due to improvements in its refinery operations and its ethanol unit.

RHI chairman Pedro Roxas said  the sugar industry was fraught with challenges this crop year brought about by the prolonged La Niña phenomenon that caused a general decline in the yield of sugarcanes and likewise extended harvesting and milling operations.

“Despite unfavorable weather conditions, the refinery operations of the Nasugbu plant reflected reduced losses as a result of the combined effect of higher refining yields and lower fuel cost specifically for the refinery,” Roxas said.

RHI president and CEO Celso Dimarucut likewise highlighted the contribution of the San Carlos ethanol plant to the overall improved performance of the group.

“We have recorded significant improvements in our ethanol unit, as a result of, a strategic shift in the sourcing of San Carlos Bionergy, Inc. (SCBI)’s primary raw material, with the increase in milling from sugarcane syrup, while still maintaining flexibility in the use of molasses, as opportunities arise,” Dimarucut said.

He said the group is keen on implementing capacity building plans for the sugar unit, starting with the expected completion of the boiler conversion project for the sugar refinery this year, in time for the start of refinery operations in January 2022.

Dimarucut said the project would allow the continuous operation of the refinery independent from the mill.

“We are also happy to report that the completion of the P800 million private placements in SCBI through convertible notes, as well as, the term-out of existing short-term facilities of the RHI Group is near completion,”he added.

“All these efforts are seen to further ensure sustainable operations for the RHI Group,” Dimarucut said.

The company is targeting a complete turnaround in fiscal year 2022 as it expands the capacity of its Central Azucarera Don Pedro in Batangas.

RHI is the largest integrated sugar business in the Philippines which manages 100 percent of Central Azucarera Don Pedro in Batangas and Central Azucarera de la Carlota.