Basic Energy Q1 profit soars 935% y/y
Basic Energy [BSC 0.43 8.75%] [link], the company recently purchased by Map 2000 Development Corporation (M2DC), posted a Q1/22 profit of P162 million, up 935% from its Q1/21 net loss of P19 million, and up 2% from its Q4/21 profit of P158 million.
The company attributed its performance to the “sale of goods and services”, which was an activity that it had not engaged in for the first three quarters of 2021.
BSC acquired a 60% stake in Filoil Energy Company (FEC) for P3 billion in December of 2021, and this is the first set of disclosures that we’ve seen that incorporates any of FEC’s financials.
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I haven’t had a lot of time to digest what’s happening with BSC.
They just submitted their FY21 Annual Report and their Q1/22 Quarterly Report, and both show absolutely massive changes.
For the first three quarters of 2021, BSC posted an aggregate net loss of P48 million, but then in its Annual Report, reported a full-year net profit of P81 million.
That implies a Q4 net income of P129 million.
According to the company’s most recent filing, BSC is the sister company of the Filoil Gas and Energy Company (FGEC), as both are subsidiaries of M2DC which Rafaelito Villavicencio owns.
BSC owns 60% of FEC, with FGEC owning the remaining 40%.
FEC owns 49% of the Total Philippines Corporation, which gives BSC a 29.4% indirect interest in Total.
BSC declined to provide a breakdown of where the revenue from its majority ownership of FEC came from, just that it received the money in exchange for the sale of “goods and services”.
It feels like BSC did a massive amount of work to get these reports out before the deadline, but like with DITO CME [DITO 4.47 2.19%], I’m interested to see the majority owner of a complex business provide insight into the running of that business using standard and trackable metrics.
Fingers are crossed that the Q2 report will provide greater insight and guidance into the company’s performance.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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