A Brown Company Inc. has suspended the pre-development activities of its subsidiary Vires Energy Corp.’s 900-megawatt liquefied natural gas project in Batangas due to grid and supply challenges.
The company said its board of directors decided to halt the project because of ongoing difficulties in securing gas supply and grid connection capacity.
These hurdles have made the project timeline uncertain, prompting the holding firm to shift its organizational focus toward more profitable core businesses.
As part of a strategic portfolio cleanup, A Brown approved the recognition of a one-time, non-cash impairment provision.
The total amount of the provisions represents less than 5 percent of the company’s assets. Beyond the Vires LNG project, the write-down covers capitalized costs for the non-moving East West Rail Project and equipment related to palm oil operations in Impasugong, Bukidnon.
A Brown noted that while milling and refining activities at the Bukidnon facilities are suspended, the group is prioritizing palm oil operations through its active milling plant in Surigao del Sur, operated by Surigao Greens Agricultural Corp.
The board also approved the conversion of P135.5 million in deposits for future stock subscription in Vires Energy and P450 million in A Brown Energy & Resources Development Inc. into equity.
Company officials said these are non-cash transactions that would not impact current liquidity or cash positions.
By recording these significant non-recurring transactions within the current calendar year, the company aims to present a cleaner balance sheet for 2026.
A Brown management indicated the move does not rule out future value recovery if market conditions change to allow for the sale or redevelopment of these assets.
A Brown serves as a holding company with primary interests in real estate development across Cagayan de Oro City, Misamis Oriental, Rizal, Bukidnon and Agusan del Norte. The company earlier acquired 99.995 percent of Vires Energy from Singapore-based Argo Group Pte. Ltd. for P50.2 million.
