Roxas Holdings eyes P1.7B in earnings, plans P1.5B in capex
Roxas Holdings Inc., an integrated sugar and ethanol producer, is looking to generate P1.7 billion in earnings this year from which it hopes to finance P1.5 billion in capital expenditure for its sugar and ethanol business.
In a disclosure to the stock exchange, Roxas Holdings CFO Celso Dimarucut said “we remain focused on achieving a significant increase in EBITDA to PhP1.7 billion this Crop Year which will largely finance the forecast PhP1.5 billion of capital expenditure to be undertaken this year to enhance the efficiency of RHI’s sugar and ethanol plants and thereby contribute to improved full-year results for the Group.”
Roxas Holdings recently announced that its board of directors approved the issuance of convertible notes worth P524 million to one of its major shareholders, First Pacific Natural Resources Holdings BV. The note is convertible to 125 million common shares of the company at P4.19 per share. The issuance of the notes will increase the company’s authorized capital stock as approved by its directors last December. The issuance of the notes will be presented for approval in the company’s annual stockholders meeting scheduled for February 15, 2017.
“The issuance of the Convertible Note and the SRO (stock rights offer) in 2016, demonstrate the shareholders’ strong support for RHI and will contribute to a significant improvement in the Company’s overall financial position,” Dimarucut said.