Wednesday, August 16, 2017

DMCI Power’s first-half net income drops



By Lenie Lectura -

DMCI Power Corp. on Tuesday reported a 5-percent decline in its net income following the expiration of its income-tax holiday (ITH) for its Masbate operations in September last year.
Net income stood at P228 million at end-June this year, from P240 million posted during the same period last year, DMCI Power said.
The off-grid power firm said the impact of the ITH expiration was mitigated by the growth in energy sales volume in Masbate and Palawan, coupled with the commercial operations of its bunker-fired power plant in Aborlan, Palawan.
“Our pretax income is a better indicator of our financial performance,” DMCI Power President Nestor D. Dadivas said. “We actually grew by double digits year-on-year.”
DMCI Power logged a 15-percent percent increase in EBITDA, from P330 million to P379 million.
Serving the missionary areas makes good business sense. We are optimistic that we will meet our targets for this year, he added.
DMCI Power was established in 2006 to energize the small and remote islands in the country that are not connected to the main power grid. It currently operates in Masbate, Palawan, Oriental Mindoro and Sultan Kudarat.
Earlier, DMCI Power said it was not in breach of its power supply agreement with Palawan Electric Cooperative.
The company said it is aware of its contractual obligation to deliver 25 megawatts of electricity using thermal and diesel power plants. However, the power firm added it was unable to do so because the project could not yet take off because of “strong opposition from certain stakeholders”.
DMCI Power is pinning its hopes on President Duterte’s Executive Order (EO) 30. The company said with the EO, all permits necessary for the construction of the thermal power plant will be promptly acted upon and, therefore, “solve the energy reliability issues” in Palawan.

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