By
Lenie Lectura - August 15, 2017
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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