SPC Power FY income grows 18% to P1.8B

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LISTED energy company SPC Power Corp. reported on Thursday that its consolidated income in 2016 rose 18.4 percent to P1.78 billion from P1.51 billion in the previous year, or the equivalent of P1.16 earnings per share.

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It said the solid earnings came about due to the strong performance of its core segments of power generation and distribution.

At its recently held annual stockholders meeting in Cebu, SPC said its financial condition has improved with capital growing to P8.9 billion, equivalent to P5.96 per share. With strong performance, the company’s board approved a dividend payment of P0.40 per share.

SPC Chairman Alfredo L. Henares said they remain upbeat on their outlook for the energy sector and that they are seeking new opportunities for growth and investment in renewable energy projects including hydro, geothermal and biomass power plants.

SPC is looking at locations outside the Visayas for its renewable projects, although Henares said SPC has not abandoned its plans to pursue coal-fired power projects and power barges, which are its core business segment competency.

The company said it achieved growth despite the setback on the Naga Power Plant Complex (NPPC).

In November last year, the Supreme Court denied with finality the SPC’s urgent motion for reconsideration to raise to the en banc the court’s decision on the Naga power project. It reinstated the notice of award to Aboitiz Power Corp.’s subsidiary Therma Power Visayas Inc. for the 153.1-megawatt (MW) Naga power plant complex in Naga, Cebu.

“Moving forward, the group will continue to focus on further improving efficiencies and leveraging existing business assets to sustain or improve profitability,” SPC chief financial officer Reynante C. Del Rosario said.

Del Rosario said that SPC’s strong performance across its business segments, coupled with gains made from cost containment measures, enabled the group to attain a new record year despite the generally low electricity spot market prices prevailing in 2016.

He added that the net income contributed by power generation in the portfolio grew by a robust 69.8 percent to P551.2 million in 2016 from P324.6 million in 2015, benefiting from higher utilization of available capacity and continuous implementation of cost-efficiency measures.

Income from power distribution expanded 41.1 percent to P60.1 million, on the back of tariff adjustments approved by the Energy Regulatory Commission (ERC) and new connections and existing customers adding to the load of the distribution business.

SPC’s subsidiaries in power generation are SPC Island Power Corp., Cebu Naga Power Corp., SPC Malaya Power Corp.; while its distribution companies are Bohol Light Co., Inc.; SPC Light Co., Inc.; and SPC Electric Co. Its associates are Mactan Electric Co., Inc. and KEPCO SPC Power Corp.

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