Thursday, May 17, 2018

DMCI power unit expects to sustain growth this year


By VG Cabuag - May 14, 2018

SEMIRARA Mining and Power Corp., a unit of DMCI Holdings Inc., said it will sustain growth this year despite the scheduled and unplanned shutdowns in the first quarter of its four power plants.
“Even with the plant shutdowns, we are on track to deliver full-year growth. We expect to offset our replacement power costs in the succeeding quarters from our insurance claim,” company President Victor A. Consunji said.
Unit 2 Sem-Calaca Power Corp. was offline for the most part of the quarter for a scheduled preventive maintenance and technical inspection in relation to its rehabilitation program. Meanwhile, Unit 2 of Southwest Luzon Power Generation Corp. was shut down for preventive maintenance work.
Forced to go on unplanned shutdowns in early-March was Unit 1 of  Sem-Calaca as it required the removal of slags from its boiler. It went back into operation in March.
Unit 1 of Southwest Luzon was also shut after it exhibited abnormal equipment vibration. It will remain offline for repairs until August this year, the company said.
With the shutdown, the company began purchasing replacement power from the Wholesale Electricity Spot Market in the last week of March which had minimal impact on its first quarter earnings.
South Luzon has business interruption insurance that covers the loss of business income as a result of damage to the insured asset.
“We anticipate higher coal sales this year because of healthy demand from local and international consumers. The foreign-exchange rate and strong coal prices will also prop up our bottom line,” Consunji said.

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