Sarangani Power plant operations drive Alsons income up 15.2% in the first 9 months of 2017
Alsons Consolidated Resources, Inc.’s (ACR) net earnings in the first 9 months of 2017 rose 15.2% to
P 274.48 million from P 238.09 million in the same period in 2016 propelled by the robust revenue growth from the operations of the first 105-megawatt (MW) section of ACR’s 210 MW Sarangani Energy Corporation (SEC) coal-fired baseload power plant in Maasim, Sarangani Province. In a disclosure to the Philippine Stock Exchange (PSE) ACR– the publicly-listed company of the Alcantara Group and Mindanao’s first and most experienced independent power producer also reported a 6.9% increase in parent-attributable net earnings from P 110.04 million in the first 9 months of 2016 to P117.66 million in 2017. The company’s consolidated revenues for the period were up 6.7% at P 5.22 billion this year compared to P 4.88 billion in 2016. ACR’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to P 1.28 billion in the first 9 months of 2017- a significant 73.8% climb from P 718 million in the same period last year. The company’s EBITDA margin for the period likewise improved to 35% from 23% in 2016.
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 in 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. 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.
Before the end of 2017, ACR will commence construction of the
P 3.7 billion 15.1 MW run-of -river hydroelectric power project at the Siguil River basin in Maasim, Sarangani Province. The Siguil Hydro project marks ACR’s entry into the renewable energy sphere. The Siguil Hydro power plant is expected to begin commercial operations within the first half of 2020 and will provide power to Sarangani Province, General Santos City and key municipalities of South Cotabato.
ACR executive vice president Tirso G. Santillan stated, “We look forward to an exciting year ahead of us as by the middle of 2018 we will have 3 projects under construction simultaneously: SEC section 2 which we expect to begin operating in 2019, Siguil Hydro which will start operations in 2020, and SRPI which is targeting to commence operations in 2021.” Santillan added, “With the addition of these 3 projects to our power generation portfolio, ACR-affiliated power facilities will have around 588 MW of generating capacity –approximately 25% of Mindanao’s projected peak power demand in 2021.”
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.