LISTED holding firm Alsons Consolidated Resources Inc. (ACR) of the Alcantara Group reported a 19 percent increase in consolidated net income for the first nine months of the year, driven mainly by higher electricity sales of its power plants in Mindanao.
In a disclosure to the Philippine Stock Exchange (PSE), ACR said consolidated net income
for the nine months to September rose to P685 million from P574 million in the same period last year.
It said the increase was primarily driven by the higher dispatch of electricity sold by its three diesel-fired power plants in the south despite the lower price indices used in computing tariffs for the period.
ACR’s three power plants include the 103-megawatt (MW) Mapalad Power in Iligan City, the 100-MW Western Mindanao Power in Zamboanga City, and the 55-MW Southern Philippines Power in Alabel, Sarangani Province.
The company said that over the nine-month period, these three plants sold 1.065 million megawatt hours (Mwh) of electricity, which is 17 percent more than the 910,000 Mwh sold in the same period last year.
“All three Alsons diesel plants have significantly contributed to alleviating the power shortage in Mindanao,” said ACR.
Meanwhile, it said parent net income was slightly lower at P275 million against the P307 million registered in the same period last year due to the revaluation of dollar-denominated debt registered at parent level coming from the recent weakening of the Philippine peso against the US dollar.
Without this non-recurring loss, ACR said parent income would have been P474 million for the nine-month period, or 54 percent higher than last year’s net income attributable to the parent.
Meanwhile, the ACR board approved the creation of a new subsidiary to act as the holding company that will house all of the coal-fired power plant assets and projects which ACR is currently developing.
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 Corp. (SEC) plant in Maasim, Sarangani.
According to ACR, the first 105-MW section of the SEC plant is now in the advanced stages of testing and commissioning, and will begin commercial operations in the first quarter of 2016 with an initial capacity of 105 MW.
The SEC plant is expected to be operating at its full 210 MW capacity in 2018.
The SRPI power facility in Zamboanga City is expected to begin construction in 2016 and is slated to operate by 2019.
ACR 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. The Siguil plant is targeted to begin construction in 2016.
ACR-affiliated power facilities are expected to have a total generating capacity of 588 MW by 2019, which is expected to meet more than 25 percent of Mindanao’s projected peak demand for that year.