Operations Review 2017
REVENUES AND EXPENSES
With operating revenues growing from Php35.828 Million in 2016, to Php 38.912 Million in 2017, the company’s financing income increased by Php3.085 Million or 8.61% higher than the previous year.
Contributing factors like increase in general and administrative expenses by 17%, financing costs by 16% and decrease of other income by 32% resulted to a decrease in profit by 17% at the end of 2017.
Paid up investment with its wholly owned subsidiary increased to Php40.85 Million in 2017 from Php23.0 Million in 2016 due to the conversion of the subsidiary’s loans from the parent into equity.
During the year, the company distributed Php6.80 Million cash dividends and Php6.79 Million stock dividends out of its earnings from 2016 operations.
Audited retained earnings for 2017 registered at Php7.720 Million as compared to Php10.556 Million in the previous year. This was due to reinstatement made in 2016 because of a prior period adjustment in service fees.
EARNINGS PER SHARE
Based on 639,157 subscribed shares by the end of 2017, EPS was valued at Php16.83 per share compared to the previous year’s figure of Php22.69 based on 600,717 subscribed shares.
Additional investments from current shareholders and new members contributed to the increase in capital from Php558.561 Million in 2016 to Php630.424 Million in 2017.
NET ASSET VALUE AND NET ASSET VALUE PER SHARE
NAV increased from Php569.046 Million in 2016 to Php638.871 Million in 2017 as a result of increase in Assets and Paid up Capital. As of year-end, NAV per share is Php983.41 based on 639,157 subscribed shares.
Seven (7) new investors-ECs namely 1)BATANELCO 2)BOHECO II 3)Cantingas Hydro Power Corporation 4)COTELCO PPALMA 5)NEECO I 6)SAMELCO I 7)SIASELCO joined REFC in 2017. While CASURECO III and SOCOTECO II joined in 2018 to fully subscribe the remaining shares of the 700 million capitalization.
During a special stockholders’ meeting held in September 2017, majority of the stockholders voted to increase the authorized capital stock from Php 700 Million to Php 1.5 Billion.
Out of the Php 90 Million debt from Chinabank Savings (formerly Plantersbank), only Php 23.54 Million remains outstanding as of December 31, 2017. A Php 100 Million loan renewal was in process as of year-end.
A total of Php241.311 Million of loans were extended to 20 Borrower-ECs and the subsidiary in 2017 to fund various projects that would improve their operations. This was slightly lower by Php370 thousand compared to the previous year’s release of Php 241.682 Million. Distribution of loans by type are; 1) Utility Vehicle - Php 132.329 Million or 54.837% 2) Substation – P73.014 Million, 69Kv sub transmission lines – Php 10.00 Million or 4.44% 3) Backroom Support System Php 7.25 Million or 3.017% 4) Distribution line rehabilitation Php 70 Million or 2.9% 5) Retirement Fund Php 6.144 Million or 2.546% 6) Pole Replacement Php 3.912 Million or 1.621%.
By the year end, the Company’s loan portfolio stands at Php611.020 Million.
PERSONNEL AND ORGANIZATION
The company is run by a lean organization composed of ten (10) personnel to handle its day to day operations.