Alsons Consolidated Resources Inc., the listed company of the Alcantara Group, posted a significant increase in consolidated net earnings in the first half to P1.39 billion from P293.08 million in the same period last year, buoyed by the operations of power plants in Mindanao.
Consolidated net earnings in the second quarter rose considerably to P1.08 billion from P188.72 million in the same period last year.
Net earnings attributable to the parent in the first six months climbed to P331.98 million from P23.38 million in 2019. Attributable net earnings in the second quarter soared to P276.90 million from P17.27 million year-on-year.
Alsons’ revenues in the first half increased to P5.28 billion from P3.10 billion in the previous year, while second quarter revenues also rose to P3.07 billion from P1.87 billion in the second quarter of 2019.
The 210-megawatt coal-fired baseload power plant of Sarangani Energy Corp. continued to be the key revenue and income driver.
“For the rest of the year, we remain cautiously optimistic on the financial performance of the company. We expect higher revenues and profit margins from the full commercial operations of the Sarangani Energy plant. We will also reap the benefits of lower operating costs as we continue to maintain cost efficiency measures,” Alsons deputy chief financial officer Philip Edward Sagun said.
The SEC power plant began operating at full capacity when the second 105-MW section came online in October 2019.
The $570-million power plant provides power to key areas in Mindanao, including Sarangani province, General Santos, Cagayan de Oro, Iligan, Dipolog, Dapitan, Pagadian, Samal, Tagum, Kidapawan and Butuan. It is the single largest investment in Sarangani province and the entire Region 12.
The company supplies power to over eight million customers in 14 cities and 11 provinces in Mindanao even at the height of the enhanced quarantine in March and April.
The company, which is Mindanao’s first private-sector power generator, has a portfolio of four power facilities with an aggregate capacity of 468 MW.
Alson’s projects in the pipeline include the P4.5-billion, 14.5 MW Siguil Hydro run of river hydro power plant in Maasim, Sarangani Province, and the 105-MW baseload coal-fired power plant of San Ramon Power Inc. in Zamboanga City.
Construction of the Siguil Hydro plant, Alsons’ first foray into the renewable energy, is in full swing. The plant will be ready to provide power in 2022 to Sarangani, General Santos City,and key municipalities of South Cotabato.
The engineering, procurement, and construction contract for the SRPI plant will be signed within the third quarter, with construction expected to begin in early 2021.
The P16-billion SRPI plant is scheduled to begin operating in 2023 to deliver baseload power to Zamboanga City and nearby areas.
Alsons will also focus on renewables with seven more run-of-river hydroelectric plants in several stages of development.
The next two hydro facilities in the pipeline are the 22-MW Siayan (Sindangan) hydro plant in Zamboanga del Norte, and the 42 MW Bago hydro in Negros Occidental.