Published June 6, 2017, 10:00 PM By Myrna M. Velasco
Publicly listed SPC Power Corporation is partly on a paradigm shift on its power investments, with it now setting its investment radar on renewable energy (RE) projects that may kick-off with a hydro venture.
The company noted that it already signed a non-disclosure agreement for a prospective hydropower project, and “is holding exploratory talks with proponents of and conducting due diligence in a number of renewable projects.”
Yet as indicated by SPC Chairman Alfredo L. Henares, the company “remained upbeat with its outlook of the energy sector,” prompting it then to “seek new opportunities in renewable energy projects including hydro, geothermal, and biomass power plants.”
Nevertheless, he qualified that this will not necessarily mean they will abandon plans as to pursuing coal-fired power projects as well as those on power barges.
Reynante C. Del Rosario, SPC chief finance officer, asserted that onward, “the group will continue to focus on further improving efficiencies and leveraging existing business assets to sustain or improve profitability.”
SPC is generally into fossil fuel fired-power facilities, hence, its planned foray into RE would be some sort of divergence from its traditional business model.
Last year, as generally propelled by its business segments in the power industry, SPC Power Corporation logged modest income growth to P1.8 billion from the 2015 level of P1.78 billion.
The company has specified though that it remained a ‘financially robust episode’ for them, with profitability level translating to P1.16 earnings per share. Such similarly enabled the firm to declare cash dividend payment of P0.40 per share to its stockholders as of specified record date.
“These resulted from the strong performance in each of the company’s core segments, power generation and distribution,” SPC said.
Essentially, it noted that this shored up the company’s capital growth to P8.9 billion or an equivalent of P5.96 per share.