SPC Power profit rises in 2nd quarter

Posted on August 18, 2016
http://www.bworldonline.com/content.php?section=Corporate&title=spc-power-profit-rises-in-2nd-quarter-&id=132116

CEBU-BASED SPC Power Corp. reported a 33.1% rise in net income in the second quarter to P460.54 million largely due to the strong performance of its power generation business, the company told the stock exchange on Wednesday.

In the same quarter last year, the listed company posted P346.09 million in income attributable to the equity holders of the parent company.

Consolidated net income amounted to P470.52 million in the April-June period, up by 32.4% from the P355.25 million in the same period last year.

“The increase was primarily driven by the solid performance of the Group’s power generation business segment and higher equity earnings contribution from an associate which is also engaged in power generation,” SPC Power said.

The company said the strong summer demand for electricity and ancillary services continued throughout the second quarter resulting in the higher utilization of its power generating units.

“However, the earnings contributed by the power distribution unit decreased by 27.5% to P14.4 million in the second quarter of 2016 from P19.8 million in the same period last year due mainly to the time lag in the recovery of higher cost of electricity purchased in June 2016,” it said.

It added that the power distribution business no longer enjoys prompt payment of discounts from its new electricity suppliers after the expiration of its power supply contract with Power Sector Assets and Liabilities Corp. on Aug. 25.

The double-digit growth in income comes as consolidated revenues across all segments grew 19.9% to P861.64 million from P718.89 million because of the higher demand for electricity and ancillary services.

Cost of services increased by only 1.1% to P556.76 million.

In the first half, the group’s consolidated net income rose by 43.7% to P1.03 billion, “breaching the P1-billion mark for the first time at the middle of the year.” -- Victor V. Saulon