Bacnotan eyes education, BPO to boost growth

MANILA, Philippines - Holding firm Bacnotan Consolidated Industries Inc. on Thursday will continue investing in education and business process outsourcing to drive its growth. Company officials made this announcement even as the conglomerate suffered a 13-percent decline in its net income at P317 million in 2008 owing to the economic slump. The company and its affiliate AB Capital and Investment Corp. booked mark-to-market losses on financial assets last year. However, Bacnotan benefited from the dollar’s appreciation, earning P120 million foreign exchange-related gains. “Much of our efforts last year and early this year were focused on laying the groundwork for growth in the coming years," said Ramon V. del Rosario, Bacnotan vice-chairman and president. Early this year, the company acquired 70 percent interest in University of Pangasinan and University of Iloilo, prompting del Rosario to say that education is now the company’s biggest investment. For the rest the year, the company would stop acquiring more schools, del Rosario said. Total assets at end-December last year stood at P8.5 billion, with liabilities of P1.9 billion. Bacnotan “continues to enjoy healthy financial ratios with current ratio of 3.4:1.0 and debt to equity ratio of 0.3:1," the company said. “Our strong balance sheet and high liquidity put [Bacnotan] in a very good position to face the challenges ahead, and take advantage of opportunities, brought about by the global economic crisis," del Rosario added. Besides the education sector, Bacnotan has interests in housing, steel roofing, energy and financial services. Its property unit, Phinma Property Holdings Corp., posted total revenues of P1 billion mainly from condominium projects. “This year, Bacnotan looks forward to Phinma’s two condominium projects in Quezon City," del Rosario said. Bacnotan’s steel roofing subsidiary, Union Galvasteel Corp., posted a net income of P140.4 million, 74 percent higher compared with the previous year. Trans-Asia Oil and Energy Development Corp. and its subsidiaries, Trans-Asia Power Generation and CIP II Power Corp.’s profits amounted to P88 million, a 13-percent improvement from 2007. The company has a P66 million investment in convertible preferred shares of Coral Way City Hotel Corp., which will operate a 150-room Microtel Hotel at the Mall of Asia. - GMANews.TV