Alsons Consolidated 2015 Q1 Income up 13.4%
Alsons Consolidated Resources, Inc. (ACR), the publicly-listed company of the Alcantara Group, reported a 13.4% jump in net income for the first quarter of 2015 to P213.7 million from P188.4 million in the first quarter of 2014. ACR’s revenues for the 1st quarter of 2015 rose 5.9% to P1.201 billion from P1.133 billion for the same period last year. The 103 MW diesel power plant of the Mapalad Power Corporation (MPC) in Iligan City was the main driver of revenue growth for the first quarter of this year
Apart from the MPC diesel plant, ACR’s currently-operating power generation facilities are: the Southern Philippines Power Corporation’s (SPPC) 55 MW plant in Alabel, Sarangani, the 100 MW Western Mindanao Power Corporation (WMPC) plant in Zamboanga City. All three diesel plants have significantly contributed to alleviating the power shortage in Mindanao.
ACR is developing coal-fired power facilities to help provide a stable source of baseload power for Mindanao and ensure long-term power security for the island. These facilities are: the 105 MW San Ramon Power, Inc. (SRPI) plant in Zamboanga City and the 210 MW Sarangani Energy Corporation (SEC) plant in Maasim, Sarangani. The SEC plant is in the advanced stages of construction and will begin commercial operations in the 4th quarter of 2015 with an initial capacity of 105 MW. The SEC plant is expected to be operating at its full 210 MW capacity by 2018. The SRPI power facility in Zamboanga is expected to begin construction in 2016 and is slated to operate by 2019. The company is likewise entering the renewable energy sphere with the development of a 15 MW run of river hydroelectric plant along the Siguil River in Maasim, Sarangani.
In a speech delivered during the company’s Annual Stockholders Meeting, ACR chairman and president Tomas I. Alcantara re-emphasized the company’s vision of fortifying the power generation business in Mindanao by stressing ACR’s five key project expansion strategy.
“The company is committed to completing the five key project expansion strategy we defined in the previous year — rehabilitation and operation of Mapalad Power Corporation (MPC), construction and operation of Sarangani Energy Corporation (SEC) Section 1, SEC Section 2, San Ramon Power Incorporated (SRPI), and Siguil Hydro Power — as well as ensuring the future competitiveness of Western Mindanao Power Corporation (WMPC) and Southern Philippines Power Corporation (SPPC) as they near the end of their energy conversion agreement (ECA) with the national government,” Alcantara said.
“We still believe that focusing on achieving these goals is the best way to secure the viability of the company in the future,” he added.
Highlights of 2014 included MPC marking its first full year of operations and significantly contributing to the company’s revenues. This was followed by SEC Section 1’s construction and 86% completion during Q4 2014 which is now expected to begin commissioning by Q2 2015 and commercial operations by Q4 2015.
Relevant milestones include SRPI’s securing of the Energy Regulatory Commission’s (ERC) approval for its 85MW 25-year power supply agreement (PSA) with Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) in 2014, and Siguil Hydro completing last year a 22-month confirmatory study on Siguil river daily flow duration curve which determined the project’s design basis.
“All five of these key projects are moving along at a pace that we are satisfied with in order to achieve the company’s established commitments and goals,” Alcantara underscored.
The ACR chairman also discussed the necessary resources to ensure that current projects are on track. He stated the continuing goal to be on the lookout for additional talents, expertise, experiences and finances to ensure the success of the projects.
The ACR-affiliated power facilities are expected to generate a total of 588 MW by 2019. The said capacity will fulfill more than 25% of Mindanao’s projected peak demand for that year. Right in the midst of the ongoing five-year power crisis in Mindanao, Alcantara reiterated ACR’s commitment to power generation in the South.
“The company will continue to work at a tempo needed to reach our goals and not be overtaken by circumstance and competitors. We will work diligently towards ensuring that these crucial Mindanao power projects are realized. And as the company has committed in the past, we will ensure that Mindanao will have enough power to sustain its development,” Alcantara declared.
The Alcantara Group, through its other subsidiaries aside from ACR, is also engaged in aquaculture and agribusiness, property development and services. It has been an active player in the economic development of Mindanao and the rest of the Philippines for over fifty years.