Alsons 1st half 2017 revenues rise to P3.58 billion driven by Sarangani Power plant operations
In a disclosure to the Philippine Stock Exchange (PSE) Alsons Consolidated Resources, Inc. (ACR) – the publicly-listed company of the Alcantara Group and Mindanao’s first and most experienced independent power producer – reported a 12% increase in revenues in the first half of 2017 to P3.58 billion from P3.20 billion in the same period last year. The main revenue contributor for this period was the first 105-megawatt (MW) section of ACR’s 210 MW Sarangani Energy Corporation (SEC) coal-fired baseload power plant in Maasim, Sarangani Province, accounting for P2.19 billion in revenue.
ACR’s net income for the first six months of 2017 was up by around 7% to P269 million from P251 million in the first half of 2016. Net income attributable to the parent company during this period rose to P85 million – a 63% jump from the P52 million in the first six months of 2016.
Earnings per share in the first half of this year grew 75% from P0.008 in 2016 to P0.014. ACR disclosed that financial results for the first half of the year were right on track with its 2017 operating plan and budget, and that the company looks forward to achieving significant revenue and income growth at the end of the year.
The first 105 MW section of the SEC plant began operating in April of 2016, providing much needed baseload power to over three million people residing in the provinces of Sarangani, Compostela Valley, Agusan del Norte, and Agusan del Sur; the cities of General Santos, Iligan, Butuan; and other major population centers of Mindanao. Construction of the SEC plant’s second 105-MW section commenced in January of this year. Upon its completion that is targeted in the first half of 2019, SEC Section 2 is set to contribute another 105 MW of baseload power to benefit an additional three million residents of South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City, and other key areas of Mindanao. ACR expects the commencement of commercial operations of SEC Section 2 in 2019 to have a substantial positive impact on the company’s revenue and bottom-line.
At a cost of nearly US$600 million, the SEC power plant is the largest power investment in Sarangani Province and the entire Region 12. Aside from the SEC power plant, the company is also developing the 105 MW San Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Zamboanga City. The SRPI plant, which will provide baseload power to Zamboanga City and other nearby areas, is scheduled to commence commercial operations in 2021.
In June of 2017, ACR entered into a partnership with Global Business Power Corporation (GBP), – an associate of Metro Pacific Investments Corporation (MPIC), giving GBP a 50% stake in Alsons Thermal Energy Corporation (ATEC) – the holding company for ACR’s baseload coal-fired power plant assets. ACR expects the partnership agreement with GBP currently being reviewed by the Philippine Competition Commission (PCC) to be cleared within the third quarter of this year.
ACR also operates three diesel power facilities: the 103 MW Mapalad Power Corporation diesel plant in Iligan City, the 55 MW Southern Philippines Power Corporation facility in Alabel, Sarangani; and the 100 MW power plant of the Western Mindanao Power Corporation in Zamboanga City.
The company is entering the renewable energy sphere with its first 15 MW run-of-river hydro plant at the Siguil River in Maasim, Sarangani scheduled to begin construction this year and a 40 MW solar power project within the General Santos-Sarangani area.