Business World Online
Posted on July 27, 2011 08:14:12 PM
DMCI HOLDINGS, Inc. plans to spend almost $500 million to expand the capacity of its coal-fired power plant in Batangas early next year, its top official yesterday said.
Power projects, along with better performance of all units save for construction, will allow the company to post as much as P10 billion in recurring profits this year, the official said.
“It will be $450 million for the first 300 megawatts (MW)...half of that will be borrowed from banks,” DMCI Holdings President Isidro A. Consunji told reporters in Filipino after the company’s stockholders’ meeting in Makati, referring to the 600-MW Calaca power facility.
“Debt is cheap now,” Mr. Consunji explained. “Depending on the demand [for power], it is easy to invest and easy to borrow [funds].”
The initial expansion should be completed in 33 months, he added.
Its subsidiary Semirara Mining Corp. bought the Calaca power plant from the government in 2009 for $361.7 million.
The plant’s operator Sem-Calaca Power Corp. (SEM-Calaca)had earlier said it wanted to eventually raise the facility’s capacity to 1,200 MW.
The rehabilitation of the first unit of the Calaca coal power plant, now running at a derated capacity of 220 MW, is expected to last for eight to nine months from July 1. Its capacity should hit 270 MW to 300 MW after its rehabilitation, according to earlier reports.
SEM-Calaca budgeted $120 million for the rehabilitation of the power plant but estimates only $88 million will be spent due to low costs.
Mr. Consunji went on to disclose that DMCI Holdings is in talks with Chinese companies that will supply the equipment for the plants that will use a combination of coal from Semirara Mining and abroad.
This power business should drive the conglomerate’s profit to grow to new record highs.
Recurring income for 2011 will hit “between P9 billion-P10 billion,” Mr. Consunji said.
This will be better than the P7.09 billion recorded in 2010 less the P1.75-billion gain from the sale of steel fabrication unit Atlantic Gulf & Pacific Company of Manila, Inc.
“[There will be a] 20% growth in all income of units except for the construction that might go down by 20%,” Mr. Consunji said.
This, as construction firm D.M. Consunji, Inc. suffers from low government spending on infrastructure pending the implementation of public-private partnership projects.
For mining, Mr. Consunji said the company wants to produce 1.8 million metric tons (MT) of nickel from the Sta. Cruz mine in Zambales from 1.2 million MT last year.
Shares in DMCI Holdings rose by 0.55% to P46.10 each yesterday. -- Neil Jerome C. Morales
“It will be $450 million for the first 300 megawatts (MW)...half of that will be borrowed from banks,” DMCI Holdings President Isidro A. Consunji told reporters in Filipino after the company’s stockholders’ meeting in Makati, referring to the 600-MW Calaca power facility.
“Debt is cheap now,” Mr. Consunji explained. “Depending on the demand [for power], it is easy to invest and easy to borrow [funds].”
The initial expansion should be completed in 33 months, he added.
Its subsidiary Semirara Mining Corp. bought the Calaca power plant from the government in 2009 for $361.7 million.
The plant’s operator Sem-Calaca Power Corp. (SEM-Calaca)had earlier said it wanted to eventually raise the facility’s capacity to 1,200 MW.
The rehabilitation of the first unit of the Calaca coal power plant, now running at a derated capacity of 220 MW, is expected to last for eight to nine months from July 1. Its capacity should hit 270 MW to 300 MW after its rehabilitation, according to earlier reports.
SEM-Calaca budgeted $120 million for the rehabilitation of the power plant but estimates only $88 million will be spent due to low costs.
Mr. Consunji went on to disclose that DMCI Holdings is in talks with Chinese companies that will supply the equipment for the plants that will use a combination of coal from Semirara Mining and abroad.
This power business should drive the conglomerate’s profit to grow to new record highs.
Recurring income for 2011 will hit “between P9 billion-P10 billion,” Mr. Consunji said.
This will be better than the P7.09 billion recorded in 2010 less the P1.75-billion gain from the sale of steel fabrication unit Atlantic Gulf & Pacific Company of Manila, Inc.
“[There will be a] 20% growth in all income of units except for the construction that might go down by 20%,” Mr. Consunji said.
This, as construction firm D.M. Consunji, Inc. suffers from low government spending on infrastructure pending the implementation of public-private partnership projects.
For mining, Mr. Consunji said the company wants to produce 1.8 million metric tons (MT) of nickel from the Sta. Cruz mine in Zambales from 1.2 million MT last year.
Shares in DMCI Holdings rose by 0.55% to P46.10 each yesterday. -- Neil Jerome C. Morales
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