ACR posts significant net earnings growth

In a disclosure to the Philippine Stock Exchange (PSE), Alsons Consolidated Resources Inc., (ACR) – the publicly listed company of the Alcantara Group – reported consolidated net income for 2018 of ₱562.95 million from ₱103 million in 2017. As in previous years, the key driver of revenue and income for ACR remains to be the Sarangani Energy Corp. (SEC) baseload coal-fired power plant in Maasim, Sarangani Province.

The SEC plant’s first section with a capacity of up to 105 megawatts (MW) 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 plant’s second section is currently in the commissioning stage and is targeting to start commercial operations in the middle of 2019. SEC 2 is set to contribute another 105 MW of baseload power to benefit an additional three million people in various parts of Mindanao when it begins operating in 2019.

In its filing with the PSE, ACR also reported an increase in its consolidated revenues in 2018 to ₱6.66 billion, a 2% improvement from the ₱6.51 billion reported in the previous year.  This was due mainly to increased energy dispatched by the SEC plant in 2018.

ACR’s 2018 operating profit also went up 9% to ₱1.49 billion from the ₱1.37 billion reported in the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) improved from
₱2.32 billion in 2017 to 2.66 billion in 2018 with EBITDA margin at 40% in 2018 versus the 36% in 2017. Income attributable to the parent improved significantly from a loss of ₱21 million in 2017 to an income of ₱93.5 million in 2018.

Other projects in ACR’s pipeline include the ₱4.25 billion 14.5 MW run-of-river hydroelectric power project at the Siguil River basin in Maasim, Sarangani Province – ACR’s initial entry in renewable energy (RE) and the 105 MW San Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Zamboanga City. 

Apart from power generation, ACR is also engaged in property development.  The company is in partnership with Ayala Land, Inc. (ALI) 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.

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