Sarangani coal plant boosts Alsons’ 2016 profit

ALSONS Consolidated Resources, Inc.’s net income attributable to equity holders of the parent company climbed by 69% to P317 million in 2016, driven by operations of its power plant in Maasim, Sarangani province.

In a disclosure to the stock exchange on Thursday, Alsons said consolidated revenues last year rose by 42% to P7.07 billion from P4.97 billion.

The Alcantara- led listed company said the “main revenue contributor” for 2016 was the first 105-megawatt (MW) section of the 210-MW coal-fired power plant of subsidiary Sarangani Energy Corp.

The first section started operating in April 2016 to provide baseload power to the provinces of Agusan del Norte, Agusan del Sur, Compostela Valley and Sarangani; and the cities of General Santos, Iligan and Butuan, and other population centers in Mindanao.

However, finance charges on the project loan for the SEC plant’s first section weighed on its full- year consolidated net income, which fell 8% to P636 million from P691 million in the previous year.

Alsons’ operating profit increased by 25% to P1.89 billion last year from P1.51 billion in 2015. Earnings before interest, taxes, depreciation and amortization went up 51% to P2.69 billion from P1.78 billion.

In January, Alsons began building Sarangani Energy’s second 105- MW section, which is expected to be completed in the first half of 2019. The unit’s output will cover about 3 million residents in Cagayan de Oro City, Davao del Sur, South Cotabato, Zamboanga del Norte, Zamboanga del Sur and other areas on the southern island.

Alsons described its $600-million investment in the Sarangani power plant as the single largest investment in the province and in the entire Region 12.

Through various subsidiaries, Alsons operates three diesel power facilities: 103 MW under Mapalad Power Corp. in Iligan City; 55 MW under Southern Philippines Power Corp. in Alabel, Sarangani; and 100 MW under Western Mindanao Power Corp. in Zamboanga City.

This year, the holding firm plans to begin construction of the 15-MW Siguil River run-of-river hydroelectric plant in Maasim, Sarangani and the 105-MW baseload coal-fired plant under San Ramon Power, Inc. in Talisayan, Zamboanga City.

The Siguil project, which the company expects to be start running in 2020, is its first renewable energy project. The San Ramon plant is scheduled operate in late 2020.

“The company plans to develop other run-of-river hydropower projects with a total potential capacity of 185 MW in different places in Mindanao and Negros Occidental,” Alsons said.

Affiliated power facilities are expected to have a total generating capacity of 588 MW by end 2020.

“The said capacity will fulfill more than 25% of Mindanao’s projected peak power demand for that year,” the company said.

Shares in Alsons closed 2.94% higher to P1.40 each on Thursday. —