URC shareholders approve foray into power generation

Business Mirror

Posted on January 24, 2013 10:48:59 PM

SHAREHOLDERS of food and beverage producer Universal Robina Corp. (URC) yesterday approved the company’s foray into power production which starts with a planned 40-megawatt (MW) biomass plant.

URC shareholders, voting yesterday at the firm’s special stockholders’ meeting at the Crowne Plaza Galleria Manila in Quezon City, approved amendment to the company’s incorporation articles first proposed in November last year to reflect its new business.

“The amendment is intended to complement the sugar business of the corporation and will allow the corporation to maximize the productive usage of its resources,” Rosalinda F. Rivera, URC corporate secretary, said during the meeting.

Last week, the company confirmed it will spend P2 billion over three years for a 40-MW biomass-fired power cogeneration facility at the URC SONEDCO (Southern Negros Development Corp.) Sugar Mill in Kabankalan, Negros Occidental.

The plant, targeted for completion in 2015, will provide electricity primarily to the mill.

At the same time, James L. Go, URC chairman, told reporters following the meeting that part of the Negros Occidental power plant’s output may be sold.

“The power plant is just for one sugar mill, and we’re looking at 40 MW out of which we may be able to export or sell about 16-20 MW,” Mr. Go said.

“Only half will be for our own use,” he added.

Mr. Go also cited immediate gains from efficiencies at the power plant. “It will have a positive impact on our bottom line, of course. Something that is a waste product before is now being put to good use as a raw material,” he said.

The company may open similar, but smaller plants for its other sugar mills, Mr. Go added.

URC’s commodity food product segment is involved in sugar milling and refining through sugar divisions based in Northern Luzon and the Visayas, according to its 2011 annual report.

The company owns four sugar mills and three refineries in various sites in Negros Occidental, Negros Oriental, Iloilo City, Cagayan, and Passi City, Iloilo.

URC was founded in 1954 as Universal Corn Products, Inc., a cornstarch manufacturing plant based in Pasig City.

It is a unit of Gokongwei-owned holding firm JG Summit Holdings, Inc.
The firm has planned approximately P5 billion in capital expenditures for its fiscal year 2013 ending September, with a bulk of spending to go to expansion of local and overseas food lines under the company’s Branded Consumer Foods Group.

The company grew its net income by 62.87% to P8.16 billion in fiscal year 2012 from P5.01 billion in the previous year on the back of improved operating income and higher market values of bond and equity holdings.

In the same comparative periods, sales of goods and services totaled P71.20 billion, up 16.40% from P61.17 billion, while cost of sales rose by 4.11% to P52.73 billion from P50.65 billion.

URC shares gained 40 centavos or 0.47% to close at P85.90 apiece yesterday from P85.50 last Wednesday. -- F. J. G. de la Fuente   source