By Lenie Lectura - May 28, 2018
SPC Power Corp. posted a 7.3-percent
decline in first-quarter earnings compared to the same period a year ago mainly
on account of lower margins and expiration of income-tax holiday.
At end-March this year, SPC’s income
declined to P495.1 million, from P534 million in the same period last year.
“First-quarter decrease is mainly
due to KSPC [Kepco-SPC] lower generetion brought about by planned overhaul of
generating units and the expration of income-tax holidays in February 2017,”
said Jaime M. Balisacan, the company’s senior vice president for finance and
administration.
In its report filed with the
regulators, the slowdown was attributed mainly to the scheduled maintenance of
its 100-megawatt (MW) power plant; lower margins in the electricity-supply
business brought about by the combined effects of lower market price and
temporary under-recovery of pass-through costs of fuel and purchased
power due to timing difference; certain operating costs pending application for
recovery under true-up mechancisms promulgated by the Energy Regulatory
Commission; and the full impact of the expiration on February 20, 2017, of the
income-tax holiday.
“Operations during the first quarter
continued to be challenged by, among others, low market prices under a
competitive supply environment.
Despite these challenges, however,
the group is determined to execute investment and operating strategies and
expect earnings growth to follow,” the company said.
Additional income is epxected from
the 32-MW Power Barge 104 once commercial operation takes off within the second
half of the year.
“The anticipated commercial
operations of Power Barge 104 in the second half of the year will further add
to the company’s plant capacities in Cebu, Bohol and Iloilo,” it said.
SPC has a substantial presence in
the Visayas, with diesel plants in Panay and Bohol and a coal-fired power plant
in Cebu, through its partnership with Kepco. It also has interests in the
distribution sector through Mactan Electric and Bohol Light.
SPC’s revenues at end-March this
year from power generation and distribution slightly went up by 2.5 percent to
P560.1 million.
The group’s financial position
remains robust enabling the prepayment of a long-term loan and payment of
dividends. SPC Chairman Alfredo Henares said dividend payments in 2017
were the highest in SPC’s history representing a payout of 71.4 percent of
earnings.
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