In its latest financial results for the six months ended September 30, 2022, the state owned entity said profits after tax dropped by 84% to P3.5 million, which is a decrease of P14.5 million when compared to the P18 million that was recorded in the prior year. According to the Corporation, its operating costs increased year on year on the back of increased repairs and maintenance.
During the reporting period, the parastatal’s repairs and maintenance saw a 40% increase to P31 million due to planned maintenance activities. Other expenses also went up by 11% from the prior year due to a rise in inflation. Owing to the slowdown in project activities, BHC’s loan interest expenses could not be capitalised, leading to financing costs increasing by 24% year on year representing P3 million which negatively affected its profitability. In a statement accompanying the results, acting CEO, Nkaelang Matenge said BHC did not start any project during the period under review which affected the rate of capitalisation to projects of both interest expenses and staff costs resulting in an increase in interest expenses year on year by 24% to P18 million. “However, there are three major projects which are scheduled to start in the second half of the financial year, and this is expected to mitigate against this negative performance,” he said.
