DMCI Power Corp. (DPC) reported a 5-percent decline in its net income from January to September this year to P324 million after its income-tax holiday (ITH) expired. DPC’s bottom line in the same period last year was at P341 million.
Despite an increase of 18 percent in revenues to P2 billion at end-September from P1.7 billion in September last year, the off-grid energy suppliers net income dipped following the expiration of its ITH for its Masbate operations in September 2016.
“Despite our flattish sales and ITH expiration, our profitability remains strong. Our pretax earnings actually grew 11 percent year-on-year,” DPC President Nestor Dadivas said.
Earnings before interest, tax, depreciation and amortization, or Ebitda, rose by 18 percent to P554 million, compared to P469 million during the same period last year.
DPC operates and maintains bunker-fired power plants and diesel-generating sets in parts of Masbate, Oriental Mindoro, Palawan and Sultan Kudarat.
During the period, it recorded flat electricity sales volume at 181.43 Gigawatt hours (GWh) due to reduced energy dispatch to Mindoro and Palawan.
Energy sales to Palawan Electric Cooperative dipped 1 percent from 69.96 GWh to 69.32 GWh, while volume sold to Oriental Mindoro Electric Cooperative contracted 6 percent from 40.98 GWh to 38.38 GWh.
Only Masbate showed growth, as sales volume to Masbate Electric Cooperative grew by a modest 4 percent from 70.82 GWh to 73.73 GWh.
The marginal decline in total sales volume was offset by a 19-percent increase in average selling price, primarily driven by higher fuel prices.
DPC was established in 2006 to energize the small and remote islands in the country that are not connected to the main power grid.