Alsons Consolidated Resources Inc. (ACR) of the Alcantara Group on Monday reported a net income of P269 million, up 7 percent from P251 million in the first half of 2016 mainly on account of higher revenues, which increased by 12 percent.
Revenues at end-June this year hit P3.58 billion, buoyed by the P2.19-billion revenue contribution of the first 105-megawatt (MW) section of ACR’s 210-MW Sarangani Energy Corp. (SEC) coal-fired baseload power plant in Maasim, Sarangani province.
The company’s financial results, it said, “were right on track with its 2017 operating plan and budget”. Moreover, it looks forward to achieving significant revenue and income growth at the end of the year.
The first 105-MW section of the SEC plant began operating in April 2016, providing much-needed baseload power to over 3 million people residing in the provinces of Sarangani, Compostela Valley, Agusan del Norte and Agusan del Sur; the cities of General Santos, Iligan and Butuan; and other major population centers of Mindanao.
Construction of the SEC plant’s second 105-MW section commenced in January this year. Upon its completion, targeted in the first half of 2019, SEC Section 2 is set to contribute another 105 MW of baseload power to benefit 3 million more residents of South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City and other key areas of Mindanao.
ACR expects the commencement of commercial operations of SEC Section 2 in 2019 to have a substantial positive impact on the company’s revenue and bottom-line.
At a cost of nearly $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 constructing 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.
In June 2017 ACR entered into a partnership with Global Business Power Corp. (GBP), an associate of Metro Pacific Investments Corp., giving GBP a 50-percent stake in Alsons Thermal Energy Corp., the holding company for ACR’s baseload coal-fired power plant assets. ACR expects the partnership agreement with GBP currently being reviewed by the Philippine Competition Commission to be cleared within the third quarter of this year.
ACR also operates three diesel-power facilities: the 103-MW Mapalad Power Corp. diesel plant in Iligan City; the 55-MW Southern Philippines Power Corp. facility in Alabel, Sarangani; and the 100-MW power plant of the Western Mindanao Power Corp. in Zamboanga City.