Tuesday, March 19, 2019

DMCI Power Corp. sales volume up 25% to 308 GWh in 2018


Iris Gonzales (The Philippine Star) - March 18, 2019 - 12:00am

MANILA, Philippines — DMCI Power Corp. (DMC), the off-grid electricity supplier of Consunji-owned DMCI Holdings, benefited from strong power demand last year, surpassing all its sales volume records.
Sales volume grew 25 percent to 308 gigawatt-hours last year from 247 GWh recorded a year ago, DMCI Power said in a regulatory filing.
DMCI Power president Nestor Dadivas said the company enjoyed stronger power demand across all its key operating areas.
Improved distribution and transmission line systems also accounted for the double-digit growth, he added.
Dadivas said some areas serviced by DMCI Power benefited from the closure of the tourism island of Boracay in April last year for a six-month rehabilitation because of environmental issues.
“The six-month closure of Boracay positively affected Palawan and Oriental Mindoro, which are known secondary tourism spots in the Philippines. Higher tourist arrivals generated more economic activities in these areas,” Dadivas said.
For instance, the company’s sales in Palawan showed the strongest growth at nearly 34 percent to 131 GWh from 98 GWh, while Masbate energy sales reached 111 GWh, a 12 percent increase from 99 GWh in 2017.
Registering the second highest percentage growth in 2018 was Oriental Mindoro with 66 GWh in sales, a 32 percent jump from 50 GWh the year before.
In Sultan Kudarat, where DMCI Power operates as a back-up or reserve power provider, sales volume was flat at 170 MWh from 140 MWh in 2017.
On a standalone basis, DMCI Power’s net income surged 30 percent year-on-year from P359 million to P465 million.
It was among the strongest contributors to DMCI Holdings Inc., its parent firm and the listed conglomerate of the Consunji Group.
However, it was still not enough to pull up DMCI Holdings’ overall income.
In all, DMCI Holdings posted a net income of P14.5 billion last year, a two percent decline from P14.8 billion the previous year as weaker performance of Semirara Mining and Power Corp. tempered the group’s earnings.
The real estate, construction, off-grid power, mining and water businesses delivered healthy returns in 2018 but the weaker-than-expected performance of Semirara Mining and Power Corporation (SMPC) tempered the consolidated profits.
Last year, SMPC faced a series of unforeseen setbacks like the prolonged shutdown of Unit 1 of Southwest Luzon Power Generation Corporation, inclement weather and China’s soft ban on coal imports.
Net income contributions from SMPC fell 14 percent to P6.8 billion from P8 billion due to a 12 percent drop in coal sales volume and the shutdown of Southwest Luzon Power Generation Corporation (Unit 1).
Excluding non-recurring items, SMPC’s core income attributable to DMCI Holdings declined eight percent to P7.4 billion from P8.1 billion.

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