Operations Review 2015

Revenues And Expenses

The Corporation registered a financing income of Php34.073 Million in 2016 compared to Php34.187 Million in 2015. Service fees collected amounts to Php2.613 Million in 2016 which is 45% higher than Php1.801 Million in 2015. While general and administrative expenses increased by 10%, financing costs decreased by 46% resulting

Investments

Paid up investment with its wholly owned subsidiary was increased to Php23.0 Million in 2016 from Php6.0 Million in 2015. The subsidiary declared a Php4.0 Million dividend out of its 2015 operations in favor of its parent company.

Retained Earnings

During the year, the company distributed Php6.033 Million cash dividends and Php6.034 Million stock dividends out of its earnings from 2015 operations amounting to Php12.067 Million.

Audited retained earnings for 2016 increased by 13% at Php13.629 Million as compared to Php12.067 Million of previous year.

Earnings per share

Based on 600,717 subscribed shares by the end of 2016, EPS was valued at Php22.69 per share compared to the previous year’s figure of Php24.10 based on 502,411 subscribed shares.

Stockholders’ Equity

Stockholders’ equity increased from Php467.139 Million in 2015 to Php559.442 Million by the end of 2016. This was brought about by additional investments and subscription collections made during the year.

Net Asset Value And Net Asset Value
Per Share

NAV increased from Php479.433 Million in 2015 to Php573.046 Million in 2016 as a result of increase in Assets and Paid up Capital. As of year-end, NAV per share is Php954 based on 600,717 subscribed shares.

Capitalization

Nine (9) new investors-ECs namely 1)QUIRELCO 2)AURELCO 3) FLECO 4)QUEZELCO II 5)LUBELCO 6)CASURECO I 7) AKELCO 8) NORSAMELCO 9)SAMELCO II joined REFC in 2016. By the year end, 92 ECs are stockholders of REFC.

Borrowings

By the end of 2016, Php38 Million out of the Php90 Million debt from partner banks were paid. A total of Php34.4 Million term loans were also drawn from ANTECO and PELCO I to augment the company’s fund requirement to serve the loan needs of our borrowing investor ECs.

Lending Activities

A total of Php241.682 Million of loans were extended to Borrower-ECs during the year to fund projects crucial to their efficiency improvement broken down as follows: 1) Utility Vehicle 19.48% or Php47.076 Million 2) Wood Poles 4.8% or Php11.825 Million 3) Substation & 69kv 19.25% or Php46.524 Million 4) Meter Replacement 4.14% or Php10 Million 5) Working Capital 32.88% or Php79.465 Million 6) Loan Refinancing 19.36% or P46.792 Million. This amount is 35% higher than the previous year’s loan extended to borrower ECs amounting to Php179.14 Million. By the year end, the Company’s loan portfolio stands at Php559.036 Million.

 

Personnel and Organization

The company is run by a lean organization composed of eight (8) personnel to handle its day to day operations.