ACR net income surges to P293M in first half
Alsons Consolidated Resources Inc., (ACR) – the publicly listed company of the Alcantara Group – gained significant growth in consolidated net income during the first half of 2019. ACR posted consolidated net earnings of ₱ 293.08 million for the first half of this year from ₱ 120.30 million in the first half of 2018.
Consolidated net earnings for the second quarter of 2019 also jumped to ₱ 188.72 million from ₱17.16 million in the same period last year.
Net earnings attributable to the parent for the first six months of 2019 climbed to ₱ 23.38 million from a net loss of ₱ 95.74 million in 2018. Attributable net earnings for the second quarter of this year rose to ₱17.27 million from a ₱75.99 million net loss in the second quarter of 2018.
ACR’s second-quarter revenues for 2019 increased to ₱1.87 billion from ₱1.81 billion the previous year but first-half revenues for 2019 were slightly down to ₱3.10 billion from ₱3.48 billion for the first six months of 2018.
As in the past years, the first 105-megawatt (MW) section of ACR’s 210 MW Sarangani Energy Corporation (SEC) coal-fired baseload power plant was the key revenue and income driver. The SEC plant’s first section began operating in April 2016 and currently delivers power to more than three million people in the General Santos-Sarangani area and other parts of Mindanao.
The second 105-MW section of SEC (SEC 2) is currently completing its commissioning phase and will begin commercial operations in the fourth quarter of this year. SEC 2 is set to contribute another 105 MW of baseload power to benefit an additional three million people in various parts of Mindanao. The impending operation of SEC 2 is expected to significantly boost revenue and earnings for the company in 2019.
In the fourth quarter of this year, ACR – the first private sector power generator in Mindanao – will begin civil works on the ₱4.25-billion 14.5 MW run-of-river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani Province. The project is ACR’s initial entry in renewable energy and will provide additional power to the General Santos/Sarangani region when it begins operations in 2022.
Another project in ACR’s pipeline is the 105-MW San Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Zamboanga City which is slated to begin operations in 2023. SRPI will select the plant’s engineering procurement and construction contractor before the end of October this year.
ACR also has three bunker diesel plants in its portfolio: the 103-MW Mapalad Power Corp. power plant in Iligan, the 55-MW Southern Philippines Power Corp. (SPPC) power station in Alabel, Sarangani Province and the 100-MW Western Mindanao Power Corp. (WMPC) power plant in Zamboanga City.
The WMPC diesel plant has entered into an ancillary services procurement agreement (ASPA) with the NGCP to provide dispatchable generating capacity, reactive power support, and black start capability in order to stabilize the power grid in the Zamboanga Peninsula (Western Mindanao/Region 9). The SPPC diesel plant in Sarangani has also tendered a proposal to provide ancillary services to NGCP in order to help stabilize the power grid in Region 12 or South-Central Mindanao.
Apart from power generation, ACR is also engaged in property development. The company is in partnership with Ayala Land, Inc. in the development of Azuela Cove, a 27-hectare township project in Davao City. The first two Ayala Land Premier towers are currently under construction with initial turnover expected in the first quarter of 2023.