Published May 18, 2017, 10:00 PM By Myrna M. Velasco
On combined impact of its plant shutdown and hike in interest charges, the net earnings of PHINMA Energy Corporation dipped to P82 million in the first quarter from a rosier income of P119 million in the same period last year.
Overall though, the company’s level of revenues have gone up by 16 percent within the first three months to P3.6 billion – generally due to higher energy sales.
The South Luzon Thermal Energy Corporation (SLTEC) plant of Phinma Energy in Batangas had its scheduled shutdown during the quarter, hence, it affected the company’s cash stream on that period.
Additionally, PHINMA Energy reported that “interest and financial charges for the period increased to P158 million from P117 million the previous year.”
In spite of the shrink on its bottom line figure, however, PHINMA Energy still looks forward to an overall favorable financial performance for the year – which may be driven by its growing portfolio in the power retail market.
The company noted that it already successfully switched customers for an aggregate capacity of 100 megawatts – in peak load demand.
Its market share in the industry’s competitive retail regime is now at 12 percent and touted to be the biggest in that business segment of the restructured electricity sector.
Beyond retail competition, PHINMA Energy is also inclined to pursue its other blueprinted projects – including its wind farm expansion in Guimaras and the 12MW geothermal joint venture in Batangas.
For its retail electricity supplier (RES) arm, PHINMA Energy assistant vice president and head of Marketing Danielle del Rosario previously noted that majority of the company’s power retail customers are in the Luzon grid while growth is also looming for targeted end-users in Visayas.
Their RES-captured industries and commercial end-users are generally malls, office buildings and business process outsourcing (BPO) establishments and those in the manufacturing sector.
These customers are in the consumption thresholds of 1.0MW and up, since the lower consumption level had not been allowed to switch yet with the temporary restraining order (TRO) issued by the Supreme Court against the Retail Competition and Open Access (RCOA) policy.
Del Rosario explained that the main incentive for these contestable customers to switch sourcing to RES would be cost-savings – a tangible outcome that they can really account in operating expenses and ultimately in their bottom line.