By: Ronnel W. Domingo / 05:10 AM March 19,
2020
Power generators and distributors, as well as oil firms, are bracing for the
coronavirus disease’s toll on their finances, mainly due to an anticipated
decrease in demand for their services and products.
In regulatory filings, many such companies said they had
scaled down the movement of personnel as part of community quarantine measures
but gave assurance that operations were unimpeded.
Manila Electric Co. said it was
foreseeing potential impacts of COVID-19 such that efficient operation and
maintenance services of equipment might be affected in case of delay of
delivery of some essential materials and parts that were sourced from China.
With businesses shut down and people confined to their homes,
the power distribution giant also sees reduced demand from the commercial and
industrial sectors, which could be partially offset by a rise in demand from
residential customers.Cebu-based Vivant Corp. said the decline in electricity
consumption might affect its subsidiaries, including Visayan Electric Co.,
Therma Visayas Inc., Cebu Energy Development Corp., Calamian Islands Power
Corp., Delta P Inc., Prism Energy Inc., CorEnergy Inc. and Sabang Renewable
Energy Corp.Vivant also noted a possible decline in market prices, which might
result to lower energy sales.
“When the wholesale electricity supply market prices are
low, more generation companies move to the ancillary service market thereby
causing ASPA (ancillary procurement agreement) bids to be lower,” Vivant
explained.
Ancillary services refer to the provision of electricity
for a power company’s—such as National Grid Corp. of the Philippines—own use as
opposed to electricity that is delivered for end-consumers’ use.
First Gen Corp., whose subsidiaries operate most of the
Philippines’ natural gas-fired power plants, said all its power plants could be
operated with a few key personnel.
“[W]e do not expect COVID-19 to have any material impact
on current plant operations,” FirstGen said.
PetroEnergy Resources Corp. said that due to travel
restrictions, scheduled power plant maintenance by third-party foreign
suppliers might also be affected. Greenergy Holdings Inc. said one of its
suppliers, Hanergy Thin Film Power Asia Pacific Ltd., gave notice that a
shipment of Hanergy solar products would be postponed until after the community
quarantine period.
SPC Power Corp. said COVID-19 “will certainly drive
reduction in demand,” which, in turn, lowers economic growth.
“Demand may return if there is reduction in transmission
of the disease or if the fatality ratio proves to be much lower than what we
are currently seeing,” SPC Power added.
Semirara Mining and Power Corp. said
the restriction by COVID-19 primarily was on transportation that hindered
movement of personnel and goods.
However, Semirara said it was hopeful that, with
Malacañang issuing a March 13 memo that “ensur[es] unimpeded delivery of energy
services,” the operation of its coal mine and coal-fired power plants would be
unimpeded as well.
Petron Corp.’s parent firm, San Miguel Corp., said there
was “a likelihood” for a lower demand for fuel, particularly with a decrease in
the use of private and public transportation, including aircraft.
Pilipinas Shell Petroleum Corp. said operations remained
normal, citing a memo from the Department of Energy that ensured the unimpeded
delivery of petroleum products, these being products of “basic necessity.”
Phoenix Petroleum Philippines Inc. said sales initially
saw an uptick as people prepared for lockdown, but said it anticipated a
slowdown as lessened activities made an impact on their retail business.
“In our B2B (business-to-business segment), marine and
commercial road transport as well as aviation may be affected,” Phoenix said.
Upstream industry player The Philodrill Corp. said the
continuous drop in the demand for oil brought about by the slump in global
economic activities, with the series of lockdowns and ban on local and
international travels, coupled with oversupply of crude, greatly impacted crude
prices, in turn affecting its financial position.
No comments:
Post a Comment