DISCOVERY World Corp. said on Thursday that its executive committee had approved the subscription to the capital stock of its subsidiary that will hold solar energy assets.
In a regulatory filing, the company said its executive panel in a meeting on May 18 cleared the move, identifying the unit as Viper Energy Corp., which it will fully own.
It described Viper Energy as “a holding company primarily for solar energy assets in its operating sites and also for future solar energy projects” that the group may undertake.
Discovery World, which is engaged in the hotel and resort business, will subscribe to 2 million shares of the unit with a par value of P1.00 each or a total of P2 million. The subscription is subject to the Securities and Exchange Commission’s approval of the incorporation of Viper Energy.
Discovery World develops, invests in, owns, acquires, administers, constructs and operates hotels, resorts, apartelles, condominiums, townhouses, buildings, and other tourist-related structures.
As of last year, the company derived its revenues from the operations of Discovery Shores Boracay, Club Paradise, Shoppes at Vanilla Beach, Discovery Fleet, and Discovery Hospitality.
In the first quarter, it trimmed its net loss attributable to the parent firm’s shareholders to P18.86 million, down from a loss of P43.66 million, after its revenues nearly doubled to P247.94 million.
The bulk of its first-quarter top line came from room revenues at P181.72 million, up 91.4% from P94.94 million in the same period last year.
In its quarterly financial report, the company said it saw steady growth in domestic tourism resulting in an increase in the group’s hotel and resort occupancies.
It added that with the gradual return of foreign tourists in the local market, the company is “in a good position to recover from the pandemic and sees an upward economic trajectory in the years ahead.”
Discovery World said it was preparing for the launching of a new 11-hectare real estate development project “in the southern region of the Philippines.”
On Thursday, shares in the company fell by 4.58% or P0.07 to close at P1.46 each.