DMCI Power’s income dips in 9 months

The net income of off-grid energy supplier DMCI Power Corporation (DPC) for the first nine months of the year slightly dropped on the absence of an income tax holiday, coupled by flat energy sales during the period.

In a filing with the Philippine Stock Exchange, DMCI Holdings, Inc. (DMCI), the parent firm of DPC, disclosed on Tuesday that the latter saw a 5 percent fall in its net income in the first nine months of the year, registering only P341 million from the R324 million it had in the same period in 2016.

This, according to the DMCI, was brought about by the expiration of DPC’s income tax holiday (ITH) for its Masbate operations in September 2016 as well as flat energy sales.

“Despite our flattish sales and ITH expiration, our profitability remains strong. Our pretax earnings actually grew 11 percent year-on-year,” said DPC president Nestor D. Dadivas.

For the first nine months of 2017, DPC's earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 18 percent to R554 million compared to R469 million it had during the same period last year.

Its consolidated revenues from January to September 2017 also increased by 18 percent from R1.7 billion to R2.0 billion.

DPC currently operates and maintains bunker-fired power plants and diesel generating sets in parts of Masbate, Oriental Mindoro, Palawan and Sultan Kudarat.

From January to September, the company recorded flat electricity sales volume at 181.43 GWh due to reduced energy dispatch to Mindoro and Palawan.

To be specific, the firm's energy sales to Palawan Electric Cooperative dipped one 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.

Of its facilities, the one in Masbate only showed growth as sales volume to Masbate Electric Cooperative grew by a modest 4 percent from 70.82 GWh to 73.73 GWh.

In total, the marginal decline of 0.2 percent in the firm's overall sales volume was offset by a 19 percent increase in average selling price, primarily driven by higher fuel prices. (MBM)