Marcventures incurs P51-M loss as revenues fall

MARCVENTURES Holdings, Inc. reported a P50.65 million net loss for the second quarter due to lower revenues.

The company said in a regulatory filing on Thursday that its net loss for the April to June period is a turnaround from its P261.48-million net income in the same period last year.

Revenues of Marcventures for the quarter reached P299.85 million, down 74.2% from P1.16 billion a year ago, while operating expenses fell 23.3% to P68.23 million against P88.9 million in 2020.

For the first six months of the year, the company recorded a P166.31-million net loss, a reversal of its P137.52-million net income in 2020.

Revenues during the January to June period fell 74.2% to P299.85 million compared to P1.16 billion in 2020.

“It was attributable to a lower volume of nickel ore shipped out during the period which led to a decrease in revenue as compared to last year of the same period,” the company said.

Operating expenses reached P206.37 million, up 2.1% from P202.20 million recorded the previous year, as a result of increases in taxes and licenses, professional fees, community relations, and environmental expenses.

“Aside from the volatile prices of ore in the market and US Dollar exchange rate, there are no other known trends, events or uncertainties that have had or that are reasonably expected to have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations,” the company said.

Marcventures, through its subsidiary Marcventures Mining and Development Corp., operates a nickel mine under a mineral production sharing agreement in Surigao del Sur. The company’s other subsidiaries include BrightGreen Resources Corp., Alumina Mining Philippines, Inc., and Bauxite Resources, Inc.

On Thursday, its shares at the stock exchange dropped 12.50% or 15 centavos to finish at P1.05 each.

Article and Photo originally posted by Business World last June 4, 2021 12:01am and written by Revin Mikhael D. Ochave.