Socoteco-II pushes energy-saving CFLs over incandescent bulbs

By Allen V. Estabillo | Thursday| September 2, 2010 | Filed under: Business, Energy, Top Stories

GENERAL SANTOS CITY (MindaNews/2 Sept) — Power utility South Cotabato Electric Cooperative (Socoteco)-II has launched the distribution of some 132,000 compact fluorescent lamps (CFLs) here and in nine other towns in Sarangani and South Cotabato provinces as part of a massive nationwide campaign to clear households of the “power-hungry” incandescent light bulbs.

Joy Celeste Alora, Socoteco-II information officer, said Thursday they started the free switch to the energy-efficient CFLs starting September 1.

“This is to encourage our power consumers to rid their households of incandescent bulbs, which use up a lot of energy and eventually increase their power bills,” she said.

Alora said the distribution of the CFLs is part of the “Palit-Ilaw” program implemented nationwide by the Department of Energy (DOE) through local power distribution utilities or electric cooperatives.

The program, which is supported by the United Nations Development Programme (UNDP) and Global Environment Facility (GEF), is among the initiatives introduced by the national government under the National Energy Efficiency and Conservation Program.

The DOE said the program aims to eliminate the use of incandescent bulb, a “very old lighting technology in which 80 percent of the energy used is turned into heat and only 20 percent is converted to light.”

It said the CFLs, which it dubbed as “energy-saver lamp,” may reportedly last up to 6,000 to 10,000 hours while the standard incandescent bulbs are usually good for only 750 to 1,000 hours.

Under the program, Alora said power consumers in the area may avail of at least six CFLs each in exchange for six old but working incandescent light bulbs.

But as required by the DOE, she said only incandescent bulbs with a listed capacity of 25 to 60 watts are qualified for the switch program.

Alora said power consumers may avail of the free CFLs through the claims centers that were established at their main office here and sub-stations within their service area.

Socoteco-II covers this city, the seven municipalities of Sarangani province and two municipalities in South Cotabato’s first district.

“They only need to present their latest receipts and the working incandescent bulbs to avail the free CFLs,” she said.

Alora said they have been actively campaigning among local consumers for the immediate switch to CFLs to help households maintain a more efficient power consumption.

Aside from the households, she said the campaign also covers local companies and government offices in the area. (Allen V. Estabillo / MindaNews)

DMCI mulls expansion of Calaca coal-fired plant

DMCI Power Corp. is mulling the expansion of its Calaca coal-fired power plant in Batangas.

Nestor Dadivas, DMCI Power president, said that the company is studying the Luzon grid’s power situation to see if they could expand the 600-megawatt plant. “We are studying the power demand and supply situation in Luzon,” he said.

The company has yet to determine the scale of the plant’s expansion as this would be hinged on the results of the study. 

The electricity supply in the Luzon grid has been unreliable since the start of the year because the recurring power plant shutdowns have reduced the available generating capacity in the country’s biggest island group.

This was also compounded by the prolonged dry spell that has driven up the demand for electricity earlier this year.

DMCI Power is a unit of DMCI Holdings Inc., a Consunji-led company that has interests in construction, real estate and coal mining.

The holding firm acquired the Calaca plant in July last year from a state auction for $361.7 million. 

But this plant was only capable of churning out 340 megawatts of power after years of being run by the government. This has prompted DMCI Holdings to embark on a rehabilitation program to improve the plant’s deteriorating output by 130 megawatts. Dadivas said the $60-million rehabilitation will be completed by February next year.
Euan Paulo C. Añonuevo

DMCI Power to pursue expansion of 600-megawatt Calaca coal facility

By Donnabelle L. Gatdula (The Philippine Star) Updated July 13, 2010 12:00 AM Comments (0)

MANILA, Philippines - DMCI Power Corp., the power generation arm of the Consunji family, will pursue plans to expand the capacity of the 600-megawatt (MW) Calaca coal-fired power facility.
DMCI Power president Nestor Dadivas said they are now finalizing the investment program for the expansion of the coal-run power plant.
The DMCI official, however, said the amount they would invest would greatly hinge on the power situation in Luzon.
“We are studying the power demand and supply situation in Luzon,” he said.
On top of the planned expansion program, DMCI Power is also in the midst of rehabilitating the Calaca power plant to increase its capacity by an additional 130 MW.
Earlier, the power firm said it would set aside some $60 million for the rehab program.
Dadivas said the ongoing rehabilitation is expected to be completed by February 2011.
Based on the rehab plan, the company would jack up the capacity of the Calaca power facility to 470 MW from the current 340 MW.
According to Dadivas, the two units of the Calaca power facility are currently running at a combined capacity of only around 350 MW. He also noted that the two units are sometimes not capable of running at the same time.
At present, the Calaca facility consists of two 300-MW generating units and is primarily designed to run as a base-load plant.
It is also designed to utilize local coal from Semirara Mining Corp., a subsidiary of DMCI Holdings.
In July 2009, DMCI Holdings Corp., the parent firm of DMCI Power, won the Calaca plant in a bidding with an offer price of $361.7 million.
DMCI Power’s investment in Calaca is strategic as DMCI Holdings owns 56 percent of Semirara, which has exclusive rights to explore, mine and develop the coal resources on Semirara Island in Caluya, Antique.
Aside from mining DMCI Holdings is also into the construction business, running the construction component companies, and related interests of the Consunji family. Its core businesses include construction, real estate and coal mining.

STEAG to expand capacity of Philippine coal fuelled power station

30 June 2010 – The Philippines’ STEAG State Power Incorporated plans to increase the capacity of its coal fired power plant in Mindanao, reports The Manila Times. The capacity of the 232 MW facility, located in Villanueva, Misamis Oriental, will be expanded by another 150 MW in an effort to help reverse the region’s power supply deficiency.

STEAG State Power is a joint venture between Evonik Steag GmbH of Germany, which controls 51 per cent of the generator, and local partners Aboitiz Power Corporation and La Fiipina Uy Gongco Corporation, which hold the remaining 34 per cent and 15 per cent, respectively.

According to Erramon Aboitiz, president and CEO of Aboitiz Power, Mindanao needs more stable baseload capacity and also needs to diversify its generation sources to be less dependent on hydro.

“This addition to STEAG State Power is the logical way to achieve this. This project assures Mindanao of reliable and cost-effective power to fuel its continued economic advancement.”

STEAG State Power expects to complete the expansion of the coal plant by 2013.

In the first half of this year, Mindanao, which is the Philippines' second largest island, suffered from a severe generation deficit because of low water levels in the region’s hydroelectric power plants, which normally supply up to 70 per cent of power to the grid.

STEAG State Power sells its output to state-owned National Power Corporation, but the new facility will sell power to interested utilities or industries in the form of long-term sales agreements says the company.

Depending on the interest in the market, the consortium may decide to build additional generating capacity, reports the Manila Times.

The expansion of the plant is part the company’s previously announced plan to grow its coal generation portfolio across the country over the next five years.

The group has yet to finalize the financing for the proposed expansion but it is likely to focus on project finance loans. “The funding of that will be a combination of debt and equity,” Aboitiz said.

SEMIRARA MINING CORPORATION Stock Rights Offering – Adjustment of Ex-Date

In a letter dated June 21, 2010, the Company, through its legal counsel, Castillo Laman Tan Pantaleon & San Jose, advised the Exchange that, in view of thedeclaration of June 30, 2010 as a non-working holiday, the ex-date will be adjusted from June 28, 2010 to June 25, 2010. Notwithstanding such adjustment in the ex-date, the other material dates for the SRO such as the Record Date, Offer Period and Listing will not be moved. In this connection, please be informed of the following timetable for the Company’s SRO:


Ex-Date June 25, 2010 
Record Date July 1, 2010 
Offer Period July 5 – July 9, 2010 
Listing Date July 19, 2010 

Source: www.pse.com.ph

PSE okays stock rights offering of Semirara

By Zinnia B. Dela Peña (The Philippine Star) Updated June 12, 2010 12:00 AM Comments (0)

MANILA, Philippines - The Philippine Stock Exchange has approved the listing application of Semirara Mining Corp. for its planned stock rights offering amounting to around P4.15 billion.
Semirara, which is 56 percent owned by Consunji holding firm DMCI Holdings Inc., is offering a total of 59.375 million shares to stockholders at a ratio of one new common share for every five common shares held as of July 1. The shares will be sold at P74 each, a price which which was arrived at using the volume weighted average price of the company’s common shares covering the 15-trading day.
Net proceeds from the offering, which will run from July 5 to 9, will be used to partially finance theacquisition of the 600-megawatt (MW) Calaca coal-fired power plant in Batangas, through its wholly-owned subsidiary, SEM-Calaca Power Corp. Around P2.7 billion will be needed by the company for this.
The Calaca facility consists of two 300-MW generating units designed to run as a base load plant and designed to use local coal from Semirara.
Semirara’s total investments for the Calaca facility are estimated to reach $483.6 million, which include the acquisition cost of $361.7 million. The remaining $121.89 million had been allocated for the rehabilitation and working capital requirements of the power plant.
The company is also setting aside P1.63 billion out of the expected proceeds for payment of various bank loans. Around P890 million will be used for the purchase of mining equipment, tugboats and barges.
In December last year, Semirara paid the state-owned Power Sector Assets and Liabilities Management Corp. (PSALM) $150.8 million as downpayment for the coal facility.
BDO Capital & Investment Corp. has been tapped as the lead underwriter for the offering.

DMCI Holdings earns P1.4 billion in Q1, up by 81%

By JAMES A. LOYOLA

May 18, 2010, 3:49pm

DMCI Holdings, Inc. reported a jump of 81 percent in its first quarter consolidated net income to P1.4 billion in 2010 from P775 million in 2009.

In a disclosure to the Philippine Stock Exchange, the firm said significant growth in the construction and mining business along with the maintained results in the real estate segment and the water investment all contributed to the impressive bottom line.

For the period, the construction was the main driver of growth for DMCI due to the revenues recognized from works on the new big ticket projects.

Also, the mining business, particularly coal mining, doubled contributions as coal deliveries to both exports and domestic customers picked up. Water and real estate registered marginal but respectable improvements as well.

Despite a spike in operations, first quarter net contributions from the water business (Maynilad Water Services) reported a sustained amount of P391 million in 2010 compared to P337 million in 2009, due much to the consortium adjustments recognized which extraordinarily increased 2009 first quarter income.

The construction business more than tripled its net contributions for the period from P145 million last year to P500 million this year as general construction and engineering works from local buildings and domestic infrastructure projects coupled by foreign steel fabrication contracts boosted revenues.

The general construction unit, operated under wholly-owned, D.M. Consunji, Inc. (DMCI), tripled net contributions to P390 million as construction and engineering works from the new big ticket projects were essentially started in the second half of 2009.

DMCI’s coal mining business and its major power generating asset (Calaca), both lodged under 58.8 percent-owned Semirara Mining Corporation, reported an improvement in first quarter operating results from a net income of P298 million in 2009 to P594 million in 2010 providing an 80% growth in net contribution from P173 million to P312 respectively.

The Company’s real estate business, under the brand name DMCI Homes, recognized a 24 percent increase in net contributions for the period from P134 million last year to P166 million this year despite a 31 percent drop in realized revenues.

DMCI’s steel fabrication business, 98 percent-owned Atlantic Gulf and Pacific Company of Manila, Inc. (AG&P), reported a remarkable growth of 7.3 times in first quarter net contributions from P15 million in 2009 to P110 million in 2010.

Stock Pick: Semirara Mining Corp.

Recommendation: BUY/ ACCUMULATE

Semirara Mining Corp. December 23, 2008 = 100
Share Price	51
High (past 52 weeks)	51
Low (past 52 weeks)	22.25
Market Cap. (M)	14,156.21
Price-Earnings Ratio	10.98
Earnings Per Share	2.87
Source: Technistock

INVESTORS are advised to accumulate shares of coal producer Semirara Mining Corp. as the stock remains relatively cheaper than any other mining stock, AB Capital Securities, Inc. said.

“The stock is cheaper at a price-earnings ratio of 10x and this makes Semirara shares a good buy,” said Prince Anthony A. Yeung, an analyst at the brokerage firm.

Mr. Yeung also said a possible pullback in the Philippine Stock Exchange index (PSEi), which already broke the 3,000 level this year, is likely so that investors should start accumulating at this time.

Among others, Semirara has shown consistency in its business growth. Coal revenues in the nine months to September reached P9.2 billion surpassing 2008’s full-year sales of P8.5 billion. Its strong sales were due to increases in production volume and better selling prices.

“This trend has actually been observed for the last four years, where the company’s financial performance always equal or even breach its total sales for the previous year,” Mr. Yeung said.

An expanded market, higher volume of sales and an improvement in the quality of its products are contributing to Semirara’s growth.

Mr. Yeung estimates Semirara’s coal revenues to top P11 billion by yearend, translating to a net income of P1 billion.

While most of listed mining firms recorded net losses for the third quarter, Semirara bucked the trend by profiting P580.6 million during the July to September period, more than triple last year’s P172.8 million.

On Wednesday last week, shares of Semirara closed at its intraday high of P51 apiece, extending a rally for the third straight trading day.

Semirara shares have gained by 43.7% so far this year from just P35.50 apiece at the first trading day of January. The stock price, however, is 1.9% off its 52-week high of P52 recorded on Dec. 1.

Semirara is also set to mine an additional 7,200 hectares in Caluya and Sibay Islands in Antique, after the Department of Energy (DoE) approved its application to amend its coal operating contract (COC) last week.

In a Dec. 21 disclosure to the stock exchange, the DMCI Holdings, Inc. unit said the DoE had approved the amendment of the company’s COC No. 5 to add 3,000 hectares in Caluya Island and another 4,200 hectares in Sibay Island, both in Antique.

DOE okays Semirara coal project in Antique

By Donnabelle L. Gatdula (The Philippine Star) Updated December 22, 2009 12:00 AM Comments (0)

MANILA, Philippines - The Department of Energy (DOE) has allowed Semirara  Mining Corp., owned by the Consunji family, to mine and develop coal in Caluya and Sibay Islands in Antique. In a disclosure to the Philippine Stock Exchange, Semi-rara said it would explore 24 areas, covering the second  amendment of its coal operating contract (COC) No. 5  which  includes a land area of  3,000 and 4,200 hectares in  Caluya and Sibay Islands, respectively.
Based on Semirara’s original coal contract, it could develop only about 5,500 hectares in Semirara Island.
“The request for amendment of COC 5 contract area is the result of the operator’s geophysical and reconnaissance evaluation of the presence of coal occurences in Sibay and Caluya Islands,”
the amended agreement said. The DOE said it found Semirara’s request for amendment as “meritorious” and directed the company to pay P400,000 in two tranches “in consideration of the  amendment to the contract.”
Earlier, the DOE also approved the extension of Semirara’s contract in Antique by another 15 years from July 13, 2012 up to July 24, 2027. The contract covers 13 blocks in Semirara Island.
Semirara is the country’s largest local coal company in the country. It is mainly engaged in the exploration,  mining, development and sale of coal resources.
Semirara started to supply coal to power the 600-megawatt Calaca coal plant in Batangas, now also owned by the Consunji Group. Currently, Semirara is one of the four major business interests of DMCI Holdings Inc., the investment vehicle which consolidates all construction business, construction component companies and related interests of the Consunji Family.
The other major DMCI units are D.M. Consunji Inc., DMCI Project Developers Inc. and Atlantic Gulf and Pacific Co. of Manila Inc. (AG&P).

Gov’t expands Semirara Mining’s coal contract

By Amy R. Remo
Philippine Daily Inquirer
First Posted 22:20:00 12/21/2009

Filed Under: Government, Mining and quarrying, Energy

THE DEPARTMENT OF ENERGY HAS expanded the coal operating contract of Semirara Mining Corp. to include some 7,200 hectares of prospective coal-rich areas on the Sibay and Caluya Islands.
In a disclosure to the Philippine Stock Exchange, Semirara said the amendment to COC No. 5 was the “result of the (company’s) geophysical and geological reconnaissance evaluation of the presence of coal occurrences in Sibay and Caluya Islands.”
The amendment also brought the total land area under Semirara’s COC No. 5 to 12,700 hectares.
In June, the energy department granted Semirara a coal reconnaissance permit covering 24 coal blocks on Sibay and Caluya Islands in Antique. After two months, Semirara requested the DOE to amend its COC to include the additional coal areas.
The DOE amended the contract to cover 5,500 hectares (14 coal blocks) on Semirara Island; 3,000 hectares (nine coal blocks) on Caluya Island, and 4,200 hectares (12 coal blocks) in Sibay Island.
“In view of the amendment, the operator will provide P400,000 in assistance in-kind to the DOE to be paid in two equal tranches,” document showed.
Last year, the DOE had extended the company’s contract by another 15 years, giving it the exclusive right to explore, develop and mine for coal on Semirara Island until 2027.
The government, through the now-defunct Energy Development Board, awarded a 35-year contract to another company in July 1977. This was later assigned to Semirara.
Recently, Semirara Mining, through its wholly owned subsidiary, paid Power Sector Assets and Liabilities Management Corp. $150.8 million, representing the down payment for the 600-megawatt Calaca coal power plant.

BPI allots P5 billion for sustainable energy-related projects

By Ted P. Torres (The Philippine Star) Updated November 07, 2009 12:00 AM

MANILA, Philippines - The Bank of the Philippine Islands (BPI) is prepared to extend to P5 billion in loans to sustainable energy-related activities.

The amount, which forms part of a risk sharing agreement with the International Finance Corp. (IFC), is the second tranche of an energy conservation program accord signed early this year.

The IFC is the private investment arm of the World Bank, has been increasing its assistance to activities related to sustainable energy and renewable energy. Its latest thrust is to tie up with domestic financial institutions for risk sharing activities.

So far, BPI has provided P1.2 billion in loans to renewable energy, sustainable energy and energy efficiency-related projects.

“It has been raised to P2 billion, but we are willing to go up to P5 billion,” Aurelio R. Montinola III, BPI president, said during the formal launching of the bank’s 2008 Sustainability Report. BPI is the first commercial bank in the Philippines to release report based on the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines.

It was learned that one borrower spent up to P300 million to improve its energy and energy-related facility for manufacturing.

Montinola said BPI, which is a member of the Ayala Group of Companies, has invested P100 million on energy efficient equipment for its head office and its 865 branches, business centers and remittance centers.

BPI plans to reduce the energy and water consumption of its head office by five percent.

It consumes roughly 34,909,398 kilowatthours (kWh) of electricity and 766,987 cubic meters of water yearly. This translates to roughly 16,225 tons of carbon emissions.

BPI has outlined 16 indicators for sustainability guided by its four strategic themes: total customer experience, reduction of environmental footprints, market expansion and employee engagement.

The bank is also looking at the transformation of all its branches to minimize its carbon footprint, to forge more partnerships with energy and environment conservation advocates such as the WorldWildLife Fund (WWF) and the IFC, as well as increase its involvement in microlending.

The joint venture is called BPI Globe Bangko, a savings bank (Bangko), it will service microfinance institutions (MFIs) for wholesale lending. It will not open branches, often referred to as bricks-and-mortar, but instead rely on mobile banking and the existing infrastructure of Globe to issue loans and receive deposits.

“BPI chose to embark on sustainability reporting in order to show its various stakeholders the bank’s commitment towards sustainability and corporate responsibility,” Montinola said.
He added that BPI would issue annual sustainability reports other than its annual financial reports “adding new quantifiable metrics to be able to progress to a higher level of application.”