A. Brown Co. Inc. is cleaning up its portfolio, with its board approving one-time, non-cash impairment provisions on non-core investments and assets as the investment holding firm sharpens its focus on profitable core businesses.
The company said the total provisions amount to less than 5 percent of its total assets and will have no impact on cash or liquidity. The move is aimed at presenting a leaner balance sheet and clearing the way for more disciplined capital allocation.
Among the assets covered is the Vires LNG Project in Simlong, Batangas, where the board decided to suspend pre-development activities. The company cited persistent challenges in securing grid connection capacity and gas supply, making the project’s timeline increasingly uncertain.
The impairments also include capitalized costs from preliminary studies for the East West Rail Project, which has remained stalled with no clear path toward implementation.
In addition, A. Brown recognized impairments on property, plant, and equipment related to its ABERDI palm oil plantation, mill, and refinery operations in Impasugong, Bukidnon. Milling and refining activities at the Bukidnon facilities have been suspended, as the group prioritizes palm oil operations at its active milling plant operated by Surigao Greens Agricultural Corporation in Surigao del Sur.
Alongside the impairments, the board approved the conversion of Deposits for Future Stock Subscription into equity. This includes Php 135.5 million in DFFS for Vires Energy Corporation and Php 450 million in DFFS for ABERDI.
The company emphasized that both the impairment provisions and the DFFS conversions are non-cash transactions and will be reflected in its 2025 audited financial statements. Recognizing these one-time items now, A. Brown said, allows the company to reset its books and move forward with a cleaner financial position.
The portfolio cleanup, the company added, does not foreclose future value recovery should market conditions improve and allow redevelopment or asset sales.
